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New Zealand and Timor-Leste have developed a warm and close relationship since September 1999. The bilateral relationship is underpinned by New Zealand's strong support for the development of an independent and stable Timor-Leste, through peacekeeping, development assistance and diplomatic efforts.
New Zealand's support for Timor-Leste's security has been an important element of the bilateral relationship. New Zealand peacekeepers first deployed to Timor-Leste in September 1999 and a New Zealand-led battalion was stationed in the Cova Lima district (in the West, on the border with Indonesia) until November 2002. There are at present two NZDF officers serving in Timor-Leste with the UNMISET extension (until June 2005), with a further two officers serving with UNOTIL. NZDF personnel also provided bilateral assistance to the Timor-Leste Defence Force (F-FDTL) under a Mutual Assistance Programme. During the period 1999-2001, up to 30 New Zealand police, corrections and customs officers were deployed to Timor-Leste at any one time to help run essential services and train Timorese counterparts.
In May 2006 New Zealand deployed police and military troops to Timor-Leste in response to the Timorese government's request for assistance. Under the command of the ISF, New Zealand troops helped restoring law and order in Dili, allowing the process of political reconciliation to begin. New Zealand continues to contribute one infantry company group to the ISF and 25 police to UNPOL.
The New Zealand Representative's Office in Timor-Leste opened in November 2000 to promote New Zealand's political relationship with Timor-Leste and to manage the NZAID programme. The office became a Consulate-General on Timor-Leste's independence and, to signal New Zealand's commitment to its relationship with Timor-Leste, the Consulate-General was upgraded to full embassy status on 1 October 2005. The Embassy is currently staffed by one New Zealand diplomat and one NZAID staff member (this will soon be expanded to include a third seconded staff member) as well as several locally-engaged staff.
NZAID's development assistance programme is an important and long-term element of the bilateral relationship. Since 1999, New Zealand has provided close to NZ$30 million to Timor Leste focused on basic education, community development, governance/institutional capacity building and humanitarian assistance. NZAID scholarships also allow for selection of three Timorese students every year to study at New Zealand universities. The ODA budget allocation for Timor-Leste for the 2006/07 financial year is $4.1 million and focuses on sustainable rural livelihoods, basic education and good governance. During the crisis last year NZAID provided NZ$1.7 million in humanitarian assistance, and contributed NZ$3 million to New Zealand Police deployments to Timor-Leste. New Zealand has provided moderate support to the 2007 elections process through the New Zealand Electoral Commission and UNDP's multi-donor support programme. Further information on the NZAID Timor-Leste programme, including the NZAID Timor-Leste Fact Sheet, can be found on the NZAID website, www.nzaid.govt.nz.
Bilateral trade between New Zealand and Timor-Leste
for the year ending December 2006 was around
NZ$413,000. Imports totalled NZ$ 274,000 over
the same period. Our exports to Timor-Leste consist
usually of machinery, but vary from year to year
and were worth NZ$139,000 for the December 2006
year.
Land Area - 14,874 km2
Population - 1 million (2006)
Capital City - Dili
Religion - Predominantly Roman
Catholic (97%)
Language - Tetum and Portuguese
are the official languages. There are also several
local dialects. Tetum is spoken by around 80% of
the population. Portuguese is spoken by about 5%
of the population, mostly in Dili. Bahasa Indonesia
is widely spoken and, along with English, has been
designated as a working language.
Currency - US dollar
Political system - The Constitution
provides for a semi-Presidential system, where
the scope of the President's powers is limited.
The legislative branch of government (headed by
the Prime Minister) retains the bulk of political
power.
National government - Coalition
Government led by the Alliance of Parliamentary
Majority (AMP), which comprises four parties: the
National Congress of Reconstruction of Timor-Leste,
the Social Democratic Party, the Democratic Party
and the Social Democratic Association of Timor-Leste.
National legislature - Unicameral
national parliament of 88 members, comprising 75
seats elected from national party lists and one
member elected from each of the country's 13 districts.
Last election - May 2007 (Presidential),
June 2007 (Parliamentary)
Next election - due 2012 (Parliamentary),
2012 (Presidential)
Head of State - President H.E. Dr
José Ramos-Horta
Head of Government - Prime Minister
Xanana Gusmão
(incorporating Defence and Police portfolios)
Key Ministers - Deputy
Prime Minister José Luís
Guterres, Minister of Foreign Affairs
and Cooperation Zacarias
da Costa, Minister of Finance Emília
Pires, Minister of Justice Lúcia
Lobato
Main political parties -
FRETILIN, National Congress of Reconstruction
of Timor-Leste (CNRT), Democratic Party (PD),
Social Democratic Party (PSD), Social Democratic
Association of Timor-Leste (ASDT)
GDP - US$ 356 million (2006)
GDP per capita - US$ 350 (2006)
Real GDP growth -1.6 percent (2006)
Exports (FOB) - US$ 8.1 million
(2005)
Imports (FOB) - US$ 101.6 million
(2005)
Main exports - Coffee
Inflation - 4.1 percent (2006)
NZ Exports (FOB) - NZ$ 139 000
Main Exports - Various (machinery,
tablewear, linen, wine)
NZ Imports (CIF) - NZ$ 274 000
Main Imports - Coffee
Services Trade - Tourism and education
trade is negligible
On 20 May 2002, Timor-Leste became a newly independent nation following several centuries as a Portuguese colony, 24 years of Indonesian rule and a brief period under United Nations administration.
On 27 September 2002, Timor-Leste joined the United Nations and changed its name from East Timor to the Democratic Republic of Timor-Leste. As well as being an active member of the Community of Portuguese Speaking Countries and the Movement of Non-Aligned states, Timor-Leste has associated itself with more than 30 regional and international organisations and specialised agencies including the World Bank and the International Monetary Fund (IMF). In July 2005, Timor-Leste was admitted to the ASEAN Regional Forum (ARF). Timor-Leste seeks to join ASEAN in the future.
Due to the deterioration of the security situation in April-May 2006, the Timorese government was forced to call for international assistance. New Zealand, Australia, Malaysia and Portugal deployed police and military troops and in August the UN Security Council established an enlarged mission in Timor-Leste, the United Nations Integrated Mission in Timor-Leste (UNMIT).
From early on New Zealand has been significantly involved in assisting Timor-Leste with its nation-building process. This engagement has always been well received by the Timorese as well as by the international community. New Zealand's decision to upgrade its diplomatic ties with Timor-Leste to ambassadorial level in October 2005 was a reconfirmation of the commitment and support for Timor-Leste's security, reconstruction and development. As a consequence of New Zealand's current contribution to Timor-Leste in terms of security forces and humanitarian assistance, the bilateral relationship is a very close one.
Timor-Leste became the world's newest sovereign state on 20 May 2002 after nearly 450 years of Portuguese colonial rule and almost a quarter of a century of occupation by Indonesia.
Following Portugal's withdrawal from the territory Fretilin, the leading pro-independence group, declared unilateral independence on 28 November 1975. On 7 December 1975 Indonesia invaded, and formally annexed Timor-Leste the following year. The annexation was not widely recognised by the international community or the United Nations, but was largely accepted as a fait accompli. Many Timorese died in fighting and famine following the invasion.
In early 1999, Indonesian President Habibie announced that he would allow the Timorese people to vote on the option of special autonomy for Timor-Leste within Indonesia. At the same time, he indicated that should this option be rejected, Timor-Leste would secede from Indonesia. The UN Mission in East Timor (UNAMET) was authorised to conduct the ballot. Despite pre-ballot intimidation by militia groups (with links to the Indonesian military), 98.6% of those registered voted, with 78.5% rejecting the autonomy offer. Pro-integration forces responded with a campaign of systematic and widespread violence. An unknown number of people died (estimates range from 1,000 to 2,000) and there was widespread destruction of property and infrastructure. Over two hundred thousand Timorese also fled or were forcibly removed to West Timor.
In the face of concern from the international community about the widespread human rights violations taking place, Indonesia announced on 12 September 1999 that it would accept a United Nations sanctioned multinational peacekeeping force. The Australian-led force INTERFET deployed on 19 September to halt the violence and provide humanitarian relief. At INTERFET's peak, New Zealand contributed 830 troops, making up 10% of total troop numbers. INTERFET's responsibility for maintaining Timor-Leste's security was transferred to the United Nations Transitional Administration in East Timor (UNTAET) in February 2000.
Indonesia formally endorsed Timor-Leste's secession on 20 October 1999. Five days later the UN Security Council endorsed the establishment of UNTAET to provide security, establish an effective administration, assist with the development of civil and social services, ensure the coordination and delivery of international aid, and support capacity building for self-government in Timor-Leste. The UN finally relinquished responsibility for administering Timor-Leste when the country became fully independent on 20 May 2002. A successor mission to UNTAET, the United Nations Mission of Support in East Timor (UNMISET) provided support to Timor-Leste's security forces and to the public administration until 20 May 2005. At the end of its mandate, UNMISET was replaced by the United Nations Office in Timor-Leste (UNOTIL), a small political office to provide assistance to Timor-Leste authorities on essential capacity-building tasks and development of security institutions.
In April 2006, following mass demonstrations by disgruntled ex-military personnel, Timor-Leste experienced a serious breakdown in internal security and serious problems within the police force, which forced the Timorese government to call for international assistance. New Zealand, Australia, Malaysia and Portugal responded to Timor-Leste's request by deploying police and military troops. In August 2006 the UN Security Council decided on the establishment of the United Nations Integrated Mission in Timor-Leste (UNMIT) to assist with rebuilding democratic institutions, fostering good governance, supporting the process for elections, reviewing defence and security needs and coordinating economic development assistance.
On 30 August 2001, the Timorese people elected a Constituent Assembly. Fretilin, the political party historically associated with the independence struggle, won 55 of the 88 assembly seats against a small and fractured opposition (consisting of 11 parties). The Constituent Assembly was responsible for drafting Timor-Leste's constitution, which was approved on 22 March 2002. The assembly became the first parliament on independence.
Presidential elections were held on 14 April 2002. Former independence fighter and leader Xanana Gusmão was elected to office by a substantial majority. Timor-Leste's constitution provides for a semi-presidential system, in which the scope of the President's powers is limited, while the legislative branch of government retains significant political power.
Efforts to address the conflict associated with the 1975 civil war, the period of Indonesian rule and the 1999 independence ballot are ongoing:
In January 2002 the Government of Timor-Leste established a Commission for Reception, Truth and Reconciliation (CAVR) to examine the violence in Timor-Leste from 1974 to 1999 and to promote ongoing community reconciliation. The CAVR final report was presented to the President in July 2005.
In January 2002, Indonesia established an ad hoc human rights tribunal to try 18 military and government officials implicated in crimes against humanity committed in Timor-Leste. Twelve defendants were acquitted. The remaining six defendants were found guilty but appeals were lodged in all six cases, resulting in acquittals in the five appeals heard so far.
In December 2004, the Foreign Ministers of Indonesia and Timor-Leste established a Truth and Friendship Commission to "study the experiences of the past so as to strengthen ties between the two countries". Public hearings are still taking place.
In January 2005, the UN created a Commission of Experts to examine the functioning of the judicial processes of both Indonesia and Timor-Leste in relation to the crimes of 1999. The Commission's final report was publicly released in July 2005, and made a number of recommendations relevant to Timor-Leste and Indonesia to ensure accountability.
The UN-funded Serious Crimes Unit (SCU) – which operated under the jurisdiction of the Timor-Leste General-Prosecutor – also carried out the investigation and prosecution of serious crimes in Timor-Leste in 2001-2005. SCU issued 95 indictments and charged 391 individuals. Just over three hundred of those are thought to remain outside Timor-Leste – most are in Indonesia – and are unlikely to be extradited to face trial.
The security situation in Timor-Leste improved significantly after September 1999. The threat posed by armed militia groups operating out of Indonesian West Timor gradually decreased as refugee camps reduced in size.
There were violent demonstrations in the capital Dili on 4 December 2002, and there continued to be sporadic security-related incidents.
From a high of over 8000 UN peacekeeping troops and 1,500 UN Civilian Police personnel, UN forces were steadily downsized during the first two years of independence. On 19 May 2004, the United Nations officially handed over executive authority for policing to the Timor-Leste Police Force (PNTL) and external security to the Timor-Leste Defence Force (Falintil-FDTL). All remaining UN peacekeeping troops left the country in June 2005. Under UNOTIL, a total of 60 police advisers and 15 military liaison officers were mandated to assist the police and its border patrol unit.
In April 2006, the security situation deteriorated again. Mass demonstrations by disgruntled ex-military personnel and groups of unemployed youth turned violent. A number of rebel groups fled to the hills. There were serious clashes between factions of the military and police. This breakdown in internal security forced the Timorese government to call for international assistance. New Zealand, Australia, Malaysia and Portugal responded to Timor-Leste's request by deploying police and military troops. With the international forces (International Security Forces) on the ground, the security situation improved considerably, allowing the process of political and societal reconciliation to begin. Nevertheless, potential for incidents still exists and occasional outbreaks of violence continue to occur.
Stability on the border with Indonesia is an important part of Timor-Leste's future security and border discussions. Progress with processes underway to address the legacy of the 1999 violence will also continue to underpin Timor-Leste's security. These include the return or resettlement of displaced Timorese in West Timor, support for reconciliation, and effective prosecution of human rights violations.
Timor-Leste is an extremely poor country, with two-thirds to three-quarters of the population engaged in subsistence agriculture. Timor-Leste has a rating of 0.51 on the 2005 Human Development Index, placing it at 140 out of 185 countries, just behind Bangladesh. In terms of development it faces many challenging population issues, including a very young demographic and a dearth of skilled and semi-skilled personnel to implement the Government's National Development plans. Almost half of Timor-Leste's population, for example, is under the age of 15 and two-thirds are under the age of 25. Unemployment is as high as 43% among urban male youth.
Last year's unrest in Dili has created an environment of severe economic hardship and has disrupted the normal functioning of the economy. Farmers have suffered, due to the displacement of residents from the capital and the destruction of many of the local markets where their produce was sold. The 2006 coffee harvest was affected adversely and growth in agriculture, fisheries and forestry, which expanded by six percent in 2005, contracted.
Timor-Leste is relying heavily on international emergency aid. A large part of this emergency aid is being spent on food, emergency shelter and health. Medium term priorities for the government will be rebuilding the suburbs in Dili that suffered widespread property damage.
Timor-Leste's reliance on foreign aid was projected to reduce from 2007 when significant royalties and tax revenues from the Timor Sea oil and gas reserves were expected to come on stream. However this will now depend on the economy's ability to recover from the recent setback. Total revenues (royalties) expected to accrue to Timor-Leste over the project life (20 years) of the Bayu Udan Field alone are estimated at approximately US$3 billion. These revenues will be managed through the Petroleum Fund, set up in 2005 to guarantee economic security for Timor-Leste when their oil and gas reserves run out.
There is no substantial local private sector in Timor-Leste except for some small coffee holdings (coffee remains Timor-Leste's most important export earner) and retail and service providers. Sectors such as fisheries, tourism, and niche agriculture are a long way from becoming economically significant. As many Timorese rely on subsistence agriculture to survive, the population remains vulnerable to shocks such as floods, droughts, crop failures or death of family members or livestock. Unseasonably heavy rain in 2003, for example, resulted in flooding, crop damage, and a severe food shortage in the south of Timor-Leste. Significant food shortages were reported in the east towards the end of 2004. Many Timorese are expected to be reliant on government expenditure for the foreseeable future.
Timor-Leste became the United Nation's 191st member on 27 September 2002 and has, so far, secured membership in regional and multilateral organisations/fora such as the Community of Portuguese-speaking countries, the World Bank, the I nternational Monetary Fund (I MF), and the Asian Development Bank. At the 2002 Pacific Islands Forum in Fiji, Timor-Leste was granted special observer status. The Timor-Leste Government has also made moves to develop links with the Association of South East Asian Nations (ASEAN) with a view to possible eventual membership and became a member of the ASEAN Regional Forum (ARF) security dialogue in July 2005.
Three key bilateral relationships for Timor-Leste are those with Indonesia, Australia and Portugal. Xanana Gusmão made his first state visit to Indonesia as President of an independent Timor-Leste from 1-4 July 2002. During the visit a Memorandum of Understanding on the establishment of a joint commission for bilateral cooperation and a joint communiqué establishing diplomatic relations between the two nations were signed. In December 2004, it was agreed to establish a bilateral Truth and Friendship Commission between the two countries, and in April 2005 President Susilo Bambang Yudhoyono of Indonesia undertook a successful visit to Dili.
On 20 May 2002, Australia and Timor-Leste signed the Timor Sea Treaty. This treaty provides for the two parties to share government royalties from petroleum production in an agreed area of the Timor Sea, the Joint Petroleum Development Area (JPDA), jointly administered by both countries. The treaty, which came into force in April 2003, grants 90% of government royalties from the JPDA to Timor-Leste and 10% to Australia. Government royalties from the JPDA are expected to significantly accrue to Timor-Leste from 2007. Timor-Leste and Australia held the first round of formal negotiations on delimiting their maritime boundary in April 2004. These were followed by a second in April 2005, with an agreement having been reached in mid-2005 to defer boundary demarcation negotiations for 50 years while mineral extraction takes place in the Timor Sea.
The following high-level visits have taken place between New Zealand and Timor-Leste since late 1999.
New Zealand Embassy Dili, Timor-Leste
Embassy of Timaor Leste, Canberra
The Safetravel website provides a travel advisory for travellers to Timor Leste [external link].
