574 foreigners will be Timorese citizens

*Suara Timor Lorosae, June 19, 2013 Language source: Tetun
There are 574 foreigners who will be Timorese citizens shortly and these people are from Indonesia, Australia, Bangladesh, Pakistan, India, Angola, the Philippines, and Vietnam.

“We have done tests to these foreigners and these foreigners have passed the test to be Timorese citizens,” National Director for Notary and Registration, Maria do Rosario de Fatima said.

Maria do Rosario de Fatima made the comments on Monday 17 in her Office

Fergin Praises Democratic practice in Timor Leste

US Ambassador to TL - Judith Fergin

*Timor Post, June 19, 2013 language source: Tetun
The US Ambassador to Timor-Leste, Judith Fergin has praised the process of democracy building in Timor-Leste, saying democracy in the country is excellent.

Ms. Fergin said the US was committed to supporting the development of Timor-Leste which its democracy building was excellent.

“We have commitment to continue supporting Timor-Leste in various sectors through bilateral cooperation of the two countries and civil society for the process of democracy and the rule of law,” she said.

Minister for Foreign Affairs and Cooperation, Jose Luis Guterres thanked the US for its support for the country’s development and said the two countries bilateral ties was very good. 

Timor-Leste and ASEAN: Doors Closing for Dili’s Membership?

 Timor-Leste and ASEAN: Doors Closing for Dili’s Membership?   

Loro Horta - Photo: http://aginaglobal.blogspot.com

Timor Hau Nian Doben - By Loro Horta - 17 June 2013

Synopsis

Timor-Leste’s application to join ASEAN, currently stalled, may not be accepted in the end unless the country overcomes its limitations. Dili must stop blaming others for its self-inflicted wounds, which Prime Minister Xanana Gusmao says his government must address.
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Commentary

TIMOR-LESTE’s application for membership of ASEAN is facing objections by several members of the regional grouping. While Singapore has been perceived as being too reluctant to support Timor membership, its objections, based on very pragmatic reasons, are being increasingly shared by other ASEAN members such as Indonesia, which was seen as among Timor’s strongest supporters.

This is not a good sign for Dili. Among the explanations put forward for Singapore’s objections to Dili’s application are Timor-Leste’s continuing instability and its lack of capacity for membership.

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Dysfunctional government
In the past five years, the young nation’s government has grown steadily dysfunctional, with ministries and other government institutions in a state of disarray. Although Timor is one of the smallest nations in the world with a population of just over one million, the country possesses one of the largest governments in the region. The current cabinet has 55 members - 17 ministers, 14 vice-ministers and 24 secretaries of state; there are three vice ministers for education alone. To illustrate the surreal situation, there is, for example, a Secretary of State for the Environment as well as a Secretary of State for Nature Protection.

This top-heavy government is exacerbated by the very modest capacity of many of the cabinet members. For instance the foreign minister, Jose Luis Guterres, does not possess a university education while his knowledge of the English language is limited. Other ministers also lack university education while many have criminal convictions - for corruption to sexual harassment. A current minister had to be recalled from his ambassadorial post in a neighbouring country so as to avoid standing trial for sexually molesting a citizen of that country who happens to be his secretary.

The net result of this state of dysfunctionality is that Timor-Leste has not been able to fulfill some of the most basic requirements of ASEAN membership. Due to sheer ineptitude, several agreements and protocols remain to be signed and ratified. Basic requirements such as border and airport security have not been met. For instance Timorese passports including diplomatic passports lack the basic security measures and immigration services are unable to electronically read them.

Lack of talent and resources

Since taking office nine months ago the foreign minister has spent more than half of his time travelling to exotic destinations such as Mongolia and Morocco. As noted by a senior Indonesian diplomat who has been advising the country on its ASEAN membership: “These people are not serious, this (minister) is never around.”

Timor-Leste has appointed some of the country’s brightest as diplomats but they are hampered by the dysfunctionality of the government. Instead of focusing on opening embassies in ASEAN countries, a requirement for membership, the country has opened embassies in more distant places, such as South Africa and Angola.

While a reported US$2 billion from the country’s oil revenues have been spent on infrastructure the country still lacks basic facilities to host major ASEAN events such as the heads of government summit. Power cuts are frequent and the main airport runway is too short to accommodate large aircraft.

Timor-Leste is even struggling to meet its obligations towards smaller and less demanding organisations such as the Community of Portuguese Language Countries (CPLP), a loose organisation of eight Portuguese-speaking countries. In 2013 Timor-Leste is supposed to assume the two-year rotating presidency of CPLP. So far, the ministry of foreign affairs has not been able to propose an agenda for the country’s presidency.
 

Growing frustration with Timor

Timor-Leste’s inability to meet the basic requirements of membership is beginning to generate criticism among other members apart from Singapore, with Indonesia showing growing frustration at its neighbour’s inability to meet its obligations. An Indonesian diplomat expressed his concerns over the possibility that ASEAN membership may be denied to Timor-Leste for many years to come. The diplomat notes: “In 2015 ASEAN will become an economic community, if Timor does not join by then it will become even harder for the country to do so in the future, because the membership requirements will only increase.”

While Timor-Leste is far from meeting its requirements, ASEAN membership by 2015 is not impossible if there is seriousness and dedication on the part of Dili. A national approach that involves the entire state is required and in particular a serious reform of the foreign ministry is overdue. Nominations for diplomatic and other government posts need to be based on the minimum of competence and experience.

The country possesses a growing number of young and talented people educated abroad who are eager to contribute. However, many are growing frustrated and have been leaving the country or working for international organisations. In the end, Timor’s admission into ASEAN depends upon its leadership and people.

To his merit, Prime Minister Xanana Gusmao sees the daunting challenges confronting his nation. In the speech during a recent visit to Singapore, Prime Minister Gusmao acknowledged that human resource and lack of infrastructure are the main challenges facing Timor’s ASEAN membership. Scapegoating any ASEAN member like Singapore will not address the many problems faced by the young nation. Timorese need to stop the inclination, so common among developing nations, of blaming others for their self- inflicted wounds.

Loro Horta is a multiple-award winning graduate of the S. Rajaratnam School of International Studies (RSIS), Nanyang Technological University. He was formerly the United Nations’ Project Manager for security sector reform in Timor-Leste, and an adviser to the Timor-Leste Ministry of Foreign Affairs.

Xanana Gusmao, Timor Leste and regional politics | The Jakarta Post

Xanana Gusmao, Timor Leste and regional politics | The Jakarta Post

Fitri Bintang Timur, Singapore | Opinion | Mon, June 17 2013, 11:26 AM

Timor Leste Prime Minister Xanana Gusmao is often said to be the Che Guevara of the country. His charisma and charm helped him escape troubled times before his nation gained independence. Perhaps one day he might realize his dream to become a pumpkin farmer and persuade neighboring countries to accept Timor Leste as a member of the Association of Southeast Asian Nations (ASEAN).

In his lecture in Singapore last week, Gusmao explained the state of the country after the UN mission progressively withdrew in 2012. He also asserted that Timor Leste was committed to playing a more active international role by becoming a member of ASEAN as and when membership is granted.

Despite the looming domestic challenges of human resource development, lack of infrastructure, shortage of capital and socio-physiological trauma of the past, Gusmao is confident that his country can be of benefit to the region. Asia-Pacific countries will profit from Timor Leste’s strategic location as the connector between two regional organizations — ASEAN and the Pacific Island Forum — thus creating opportunities for wider trade and cooperation. The country also has a good relationship with Australia, Indonesia, New Zealand, the Solomon Islands and Vanuatu that could benefit ASEAN.

In the face of global nervousness over China’s emerging power in Asia Pacific, Gusmao stressed that the region was big enough to accommodate large powers seeking to build a better future for the region; thus, the fear of China was unnecessary. There are other large economies in the region, such as Japan, Korea and Indonesia, but there is no tension surrounding them.

Gusmao recalled his cynical response to one Western journalist’s question a couple of months back. The journalist suspected that Timor Leste was now influenced by China’s soft power after the “rising dragon” funded the construction of the country’s Presidential Palace and Foreign Ministry. To which Gusmao retorted, “China is not ‘invading’ Timor Leste; in fact, China’s investment in the country is only around US$60 million. Comparatively, it is still far below the money that China has invested in other countries.” There is a truth in Gusmao’s statement as China’s investments in the US, Australia and Indonesia reached US$54 billion, $55.9 billion and $25 billion, respectively (Heritage Foundation, 2012).

Rather than nitpicking over a certain country, Asia-Pacific nations would be advised to acknowledge its challenges. Gusmao said the region should focus on solving the issues of poverty, inequality, violence toward women and girls and regional security tensions. He offered alternative solutions of strengthening cooperation and building shared interests rather than highlighting conflicting issues. He provided a measurement of progress by reminding countries to meet the Millennium Development Goals (MDGs), which will be reviewed in 2015.

For ASEAN, action should focus on constructive measures with further cooperation in the areas of economics, the environment and building human resource capacity. Gusmao admitted that his country was in need of support for human resource capacity-building and strategy. The international fear, however, is that when the three prominent leaders of Timor Leste — Xanana Gusmao, Mari Alkatiri and Ramos Horta — retire, the country will stagnate due to a lack of human resources. Gusmao reassured that the youth of Timor Leste were now better educated than him and Alkatiri, as they both only obtained a secondary-level education. The problem, though, is how to integrate these youths to help build the country.

Interestingly, Gusmao did not mention the problems of corruption and nepotism that hamper ordinary Timor Leste citizens who want to gain high political rank. These issues, if swept under the carpet, could slow down the country’s economic growth, which is primarily derived from oil production.

In a candid Q&A session, Gusmao was asked about Timor Leste’s reconciliation process and whether other countries might be able to learn from the process. He replied that for his country, it was not wise to follow the Palestinian intifada approach and keep fighting but rather to pursue reconciliation. 

If he opted to hold the Indonesian generals responsible, then it would not be fair if the countries supplying arms to the Indonesian New Order government were not held responsible. If he pursued the blame, consequently, the young generation would suffer because it would remind them of the trauma of conflict. Therefore, for the sake of the future, he viewed reconciliation and maintaining good relations with Indonesia as more important.

Later on, Gusmao mentioned his informal meeting with Susilo Bambang Yudhoyono (when the latter was coordinating political, legal and security affairs minister under president Megawati). SBY sought Gusmao’s cooperation to prevent Timor Leste from being too troublesome as, at the time, Indonesia was going through its democratic transition and was politically unstable. After a long discussion, Gusmao agreed, and when he became Timor Leste president he kept his promise.

Currently, Indonesia is undoubtedly a significant neighbor as it is Timor Leste’s largest trading partner and the two countries share history and more than 90 percent of their land border. A couple of months ago, when Gusmao visited Jakarta, Indonesian Foreign Minister Marty Natalegawa also asserted the importance of Timor Leste as a neighbor with a shared border, and supported the country’s membership application to ASEAN. The argument of a shared border is a strong case that Marty raised, yet this does not guarantee the application’s success as Papua New Guinea, for example, was only granted Special Observer status to ASEAN in 1981, not full membership.

Indonesia also benefits from trade relations with Timor Leste, enjoying a huge export surplus that supports the two countries’ good relations. However, maintaining the friendly relationship could be put in doubt if Indonesia’s political condition markedly alters when the country faces its election next year. 

After all, one of the candidates considered within a chance of winning, based on several national survey institutes, is Prabowo, a former general who has been accused of committing human rights violations in Timor Leste. Will Timor Leste be able to keep a cool head if Prabowo ends up leading the country next door? On the other hand, whoever becomes the next Indonesian leader, will they maintain the same composure in its relations with the newly established country? We shall have to wait and see.

The author is an associate research fellow at the S. Rajaratnam School of International Studies, Nanyang Technological University, Singapore.

Seseisal in “State of disaster"

Photo: Facebook - Atabyo Amaral

*Independente, June 13, 2013 
Community leaders in Seisal in the Eastern region of Baucau have called on local government to assist with humanitarian aid as residents battle to find shelter and cleanup after large scale flooding.

Heavy rain over the weekend has washed away hundreds of houses, livestock and destroyed much of the regions rice field.

Community leaders in the area reported on state television yesterday that the region was now in “State of disaster” with many people homeless and without any chance of securing an income after crops were washed away.

Law bans children from working, says Mr. Ximenes

Photo: UNMIT

*Televizaun Timor-Leste, June 13, 2013 language source: Tetun
State Secretary for Professional Training and Employment (SEFOPE), Elidio Ximenes said the country’s law banned children from working and said they had rights to get access to education and proper health.

imenes made the comments in relation to the commemoration of the International Day against Child Labor.

He affirmed that in 2004 the Government of Timor-Leste allocated state budget for combating child labor in the country.

“As we have seen that some of the children are selling eggs on the road and helping parents to collect sands. This is actually banned by the law of the country,” he said.

SERVE One Stop Shop To Open In 2013

Noticia diak. Bainhira los mak atu estabelece duni 'One Stop shop' nee? ida nee bele hapara pratica sira nebe iha tendencia ba subornu no korupsaun...ami hein atu espalha notisia nee see guvernu estabelece duni ona. Visita ami nia blog: http://renova-timor.blogspot.com/ abraco

IRIN Asia | Timor-Leste farmers need seed support | Timor-Leste | Food Security

IRIN Asia | Timor-Leste farmers need seed support | Timor-Leste | Food Security

Photo: Cate Heinrich/IRIN

80 percent of Timorese depend on subsistence agriculture

DILI, 10 June 2013 (IRIN) - An increase in new, higher-yield seed varieties is helping some rural communities produce more food in Timor-Leste, but greater support is still needed, aid agencies say. 

“The current need to import seeds to meet the demand causes many issues for farmers and costs more than producing seed locally. Seed imported from Indonesia is often of poor quality, there are logistical issues in reaching the remote communities, and often the seed arrives late, which impacts on the time of planting that is critical,” John Dalton, team leader of Seeds of Life, a programme within the Timor-Leste Ministry of Agriculture and Fisheries, told IRIN.

Seeds of Life works to identify high-yield varieties of the country’s five staple crops - maize, rice, cassava, sweet potato and peanuts - that are best suited to the country’s climate. It also works to establish a national seed network, with seeds procured locally in Timor-Leste, to keep local farmers supplied. 

Higher yield seeds introduced 

Food security remains a challenge in Timor-Leste, where 80 percent of the country’s 1.1 million people - and 90 percent of the rural poor - depend on subsistence agriculture for their livelihood, according to the World Food Programme (WFP). 

“Based on more than 10 years’ research, the programme aims to not only identify the varieties that will produce the highest yield, but also to help farmers establish systems and networks for the production and storage of seed from those crops in the future,” Dalton explained. 

Currently, the newly introduced seed varieties reach 27,493 farmers. By March 2014, they aim to reach more than 50,000 farmers, almost half of all farmers in Timor-Leste. 

WFP says about one-third of the population regularly experiences food shortages, notably towards the end of the two lean seasons between harvests, October to November and February to March. 

Each year Timor Leste needs 211 metric tons of rice seed. Two years ago, local rice seed production met 24 percent of the total demand. Today, it meets 61 percent of the total, meaning farmers are importing less seed. Local maize seed has also increased from 6 to 39 percent of the 500 metric tons needed annually. 

Support for farmers 

But new seed varieties are only one part of the response needed to improve long-term food security in Timor-Leste, which only gained independence 11 years ago, experts say. 

“Having good seeds to plant with a reliable seed storage system owned by the community is essential. But more support is required for communities to grow healthy, nutritious food and improve food security long-term,” Kunhali Muttaje, country director for Oxfam in the capital Dili, said. 

“Farmers require assistance to access arable land in which to grow crops, and to cope with the impacts of climate change. Additional challenges include land ownership and documentation, access to market and credit facilities, and support for training.” 

Moreover, without addressing social, economic and gender issues, sustainable food security will not be achieved, agencies say. 

“It’s important to assist communities to diversify the ways of earning a living to improve food security, such as increasing fish production and diversifying food sources. The capacity to store food needs to improve to prevent food being destroyed by insects. Gender inequalities that impact on access to food must also be addressed to improve nutrition,” Mirko Gamez Arias, a programme manager at CARE, said. 

Photo: David Swanson/IRIN

Maize is an important part of the Timorese diet

Traditional vs modern methods 

Permatil, a local permaculture agency, is concerned new seed varieties will not address food security issues over the long term, noting traditional agricultural techniques and knowledge are also need to support sustainable farming. 

“These new seed varieties take time to adapt with the local environment, and, culturally, farmers need to learn new ways of farming to adapt to the use of these new seeds. Mostly new seed varieties succeed in demonstration farms, but fail in the farmers’ fields,” explained Ego Lemos, head of Permatil and an environmentalist. 

Lemos says to improve food security, “there is a need to diversify food crops and eating patterns”, and that policies should not “undermine traditional knowledge of the people in relation to sustainable farming, but instead respect and give more power to farmers to maintain their land, seeds, water and local wisdoms.” 

He added, “Traditionally, Timorese used to eat different varieties of food crops that were grown in different seasons and based on this climate, including different grains, tubers, beans, vegetables, and protein from animals. But today Timorese eat less variety in food crops and, moreover, rice has become the main food staple. This has resulted in 90 percent of food consumption in Timor-Leste being imported,” added Lemos. 

However, according to Buddhi Kunwar, a seed production advisor at Seeds of Life, “When farmers change from using the traditional maize seeds to the higher yield variety, their production increases by up to 50 percent. Gradually, the number of months that communities are food insecure is reducing because it only takes half the time for farmers to produce the same amount of food.” 

ch/ds/rz

Xanana gets positive result from Singapore and the Philippines

PM Gusmao and PM Lee. Photo: Facebook

*Suara Timor Lorosae, June 11, 2013 Language source: Tetun

Prime Minister, Xanana Gusmao brings positive result from his official visit to Singapore and the Philippines because these two Association of South East Asian Nations (ASEAN) members affirm their position to support to Timor-Leste’s application to join ASEAN.

“They (Singapore and the Philippines, red) support Timor-Leste’s application to join ASEAN, but we also recognize that Timor-Leste needs more preparations, however, they call on Timor-Leste to participate in the ASEAN summit, then, slowly we will join ASEAN,” Xanana said during a press conference at International Airport of Nicolau Lobato on Monday 10.

Xanana said through the meeting, ASEAN member states wanted Timor-Leste should join ASEAN, but the important thing was Timor-Leste should improve its human resources.

Singaporean oil tycoon to spend $ 1 billion on Timor-Leste business

Photo: Reuters

*Independente June 11, 2013

Singapore oil trader and shipping tycoon Hin Leong plans to spend up to $3 billion on fuel storage terminals and distribution in Asia, with a third of that tipped for investment in Timor-Leste.

In Timor-Leste, phased investment would begin with 100,000 cubic meters of storage for four products-kerosene, gasoline, jet fuel and asphalt.

“We started supplying oil to Timor, such as kerosene for cooking to homes, in tin cans of 18-25 liters which subsequently grew to 200-litre barel,” Him Leong Chairman O.K. Lim said in an interview with Reuters last week.

High Way Project, Timorese Entrepreneurs is ready to do joint venture

Tasi Mane Highway Project

*Suara Timor Lorosae, June 7, 2013 Language source: Tetun 
 Deputy President of Timorese National Consortium (CNT), Agostinho Gomes said they had sent a letter to Minister for Public Work, Gastao de Sousa to review the criteria for international tender for Southern Coast High Way Project to provide opportunity for CNT and other National Entrepreneurs to do joint venture with International Entrepreneur that get the project.
 
“We have sent a letter to Minister for Public Work, Gastao de Sousa to provide opportunity for National Entrepreneurs to do joint venture with international Entrepreneur that win the bidding for High Way Project,” Agostinho told journalists at His office in Fomento of Dili on Thursday 6.
 
The Government through Ministry for Petroleum and Ministry for Public Work (MOP) has decided not to include National Private Sector to High Way Project and the tender for the project will be closed on June 27, 2013.

President calls on all people to modernize Timor-Leste

President Taur Matan Ruak

*Radio Timor-Leste June 7, 2013 language source: Tetun
 President of the Republic Taur Matan Ruak (TMR) said Timor-Leste need to modernize its airport, port, education and health sector in the country, adding that the four sectors is very important to be developed but depend on the Timorese people’s commitment.
 
“Four sectors are very important to be developed such as build a good airport and port in the country; we should move forward and modernize our infrastructure,” TMR said.
 
TMR called on all entities in the country give contribution to move forward the development of Timor-Leste like other developed countries in the world.

Visiting Timor Leste PM on ASEAN bid: We believe we can contribute

Visiting Timor Leste PM on ASEAN bid: We believe we can contribute

Patricia Denise Chiu, GMA NewsJune 6, 2013 12:00pm

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Timor Leste PM in PHL for five-day visit. President Benigno Aquino III (left) walks visiting Timor Leste Prime Minister Kay Rala Xanana Gusmao to Malacañang Palace on Thursday, June 6. Gusmao is in Manila for a five-day official visit that aims to strengthen his nation's bid to join the ASEAN.Reuters/Romeo Ranoco

(Updated 3:05 p.m.) Hoping to increase his country's chances of becoming a member of the Association of Southeast Asian Nations (ASEAN),Timor Leste Prime Minister Kay Rala Xanana Gusmao is in the Philippines for a five-day state visit.

Timor Leste, a former Portugese colony, is seeking membership to the regional group. Gusmao is set to visit all of the 10 member-states of the ASEAN this year.

Gusmao arrived in Malacañang about 10 a.m. and was welcomed by President Benigno Aquino III and members of the Cabinet.

“This visit to the Philippines is part of my effort to visit all ASEAN countries. [Timor Leste] is seeking membership to the ASEAN, because [we believe we] can contribute,” Gusmao said in the two leaders’ joint statement.
Gusmao also congratulated the Philippines for its upcoming Independence Day and wished Aquino success on his trip to the World Economic Forum in Myanmar on Friday.

“I would also like to wish, on behalf of the Government and People of Timor-Leste, our heartfelt congratulations on the 115th anniversary of your independence, which you will celebrate next week. [I also] wish Your Excellency every success with your visit to Myanmar,]” he said.
 
Timor Leste and the Philippines also signed three bilateral agreements on education, policy consultations and infrastructure.

Prior to his arrival at the Palace, Gusmao laid a wreath at the shrine of National Hero Jose Rizal in Luneta.

PHL supports Timor Leste's bid

For his part, Aquino welcomed the Timorese leader and expressed support for Timor Leste’s intent to join the the ASEAN.

“Allow me to express the Philippines’ support for Timor Leste’s bid to join the ASEAN community. We look forward to working more closely with you in the future in advancing regional dialogue, which we know will redound not only to the growth of our people and our countries, but will also contribute to the stability and continued development of our region,” he said.

Aquino hailed the excellent working relationship of the Philippines and Timor Leste, citing increased trade between the two nations.

“On the economic front, it is my pleasure to say that trade between the Philippines and the Democratic Republic of Timor Leste from 2011 to 2012 almost tripled,” he said.

“This is a positive sign of our robust partnership and with the signing of the agreements on infrastructure development and capacity building amongst others, we open more doors of opportunity for both our peoples, empowering them to take part in further building a more equitable, more progressive Southeast Asia,” Aquino added.

Assistance

Additionally, Aquino thanked the Timorese leader for his country’s assistance to the Philippines following the devastation caused by Typhoon Pablo in December last year.

“On behalf of the Filipino people, I would like to thank His Excellency the Prime Minister and Timor Leste peoples for the 750,000 dollar assistance extended to us for the victims of typhoon ‘Pablo’. The kindness that Timor Leste has shown will always be remembered by the Filipino people,” Aquino said.

Aquino and Gusmao also pledged to share military intelligence.

“In defense, the Prime Minister and I shared the same commitment to conduct military consultations and to exchange intelligence that is vital to maintaining peace and security on our part of the world. This is in keeping with the joint declaration on military cooperation which was signed by both our governments last year,” Aquino said. — RSJ/KBK, GMA News

Timor Leste premier is Palace guest Thursday

Timor Leste premier is Palace guest Thursday

Kay Rala Xanana Gusmao, President of East Timor (Timor-Leste), shown in this 2003 photo, will confer with President Aquino on Thursday, June 6, 2013. Gusmao is here on a five-day state visit. AFP PHOTO

MANILA, Philippines—President Aquino will receive on Thursday visiting Timor Leste Prime Minister Kay Rala Xanana Gusmão before going to Burma (Myanmar) on Friday for the World Economic Forum (WEF).

A welcome ceremony at the Malacañang grounds has been laid out for Gusmão, who will proceed to the Palace after laying a wreath at the monument of national hero Jose Rizal at the Luneta.

Gusmão, who arrived Wednesday, will sit down with Aquino to discuss bilateral issues. The two will be signing agreements for which no details have as yet been provided.

The Timor Leste leader, who will be in Manila until Sunday, is here to forge cooperation on education, trade and investment, infrastructure and defense, foreign affairs officials said.

His itinerary includes a lecture at the University of the Philippines College of Law and visit to industrial areas in Subic Bay in Zambales and Clark Field in Pampanga.

Timor Leste is campaigning to become a member of the Association of Southeast Asian Nations, of which the Philippines is a founding member.

Read more: http://globalnation.inquirer.net/76609/timor-leste-premier-is-palace-guest-thursday#ixzz2VOqlZzXT
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2012 Investment Climate Statement - Timor-Leste

Timor-Leste

2012 Investment Climate Statement

BUREAU OF ECONOMIC AND BUSINESS AFFAIRS

June 2012

Openness to and Restrictions Upon Foreign Investment

Independent since 2002, Timor-Leste is establishing legislative, executive, and judicial institutions, developing laws and regulations, and equipping government personnel with knowledge and skills. Private and public institutions are in the early stages of building institutional capacity while addressing the challenges of improving the nation's basic infrastructure and bolstering the human capital endowment. Although instability and periods of violent upheaval marked the early years of Timor-Leste's history, the country has taken advantage of an unprecedented period of domestic tranquility since 2008 to focus on its national priorities, which in 2011 were: infrastructure, rural development, accelerated human resources development, access to justice, social service delivery, good governance, and public security and stability. The United Nations Integrated Mission in Timor-Leste (UNMIT) peacekeeping operation and the International Stabilization Force (ISF) anticipate departing from Timor-Leste at the end of 2012.

Government of Timor-Leste policy welcomes foreign direct investment. It has contracted with foreign firms to explore for and develop offshore oil and gas deposits; royalties and taxes are deposited in a sovereign Petroleum Fund, which held over US$9.2 billion by late 2011. Outside the oil and gas sector, government spending, small-scale retail activity, and subsistence agriculture are primary sources of employment and contributors to Gross Domestic Product. With one of the world's most rapidly growing populations, Timorese authorities are interested in expanding private sector economic activity to provide employment for new labor market entrants.

Commerce is picking up in Timor-Leste as consumers' and business people's confidence in future political stability rises and growing government budgets fund a larger public service and more public works. In addition to oil and gas prospects, investment opportunities exist, particularly in the services, tourism, and agriculture sectors. Obstacles to investment include bureaucratic inefficiency; paucity of local financing options; absence of rules governing real property ownership and other essential legislation; uncertain implementation of government procurement procedures; significant skill shortages; perceptions of malfeasance; conflicts of interest; and corruption.

The legal system rests on a mix of Indonesian laws and regulations that have not yet been replaced. Some acts were passed by the United Nations Transitional Administration over a decade ago, and some are post-independence Timorese legislation. The country has two official languages, Tetun and Portuguese, and two working languages, Indonesian and English; all new legislation is enacted in Portuguese and based on the civil law tradition.

In September 2011, Parliament approved a new Private Investment Law to replace the Foreign Investment Law of 2005. The new law specifies the conditions and incentives for both domestic and foreign investment, and guarantees full equality for international investors. Other major laws affecting incoming foreign investment include the Companies Code of 2004, the Commercial Registration Code, and the Taxation Act of 2008. A government agency, TradeInvest Timor-Leste, reviews foreign investment applications and is tasked with helping applicants navigate licensing and registration procedures. All investors, both foreign and domestic, are required to obtain an Investor’s Certificate, which costs $500 for domestic investors and $2,000 for foreign investors. The International Finance Corporation is working with the Government of Timor-Leste to simplify business registration.

Foreign investors may invest in all sectors that are not specifically reserved to the State (such as postal services, public communications, protected natural areas, and weapons production and distribution) or otherwise restricted by law (such as criminal and immoral activities). Only Timorese nationals, either individuals or corporate entities, have the right to private land ownership; foreigners may conclude long-term (up to 50-year) leases. The lack of a land law complicates all ownership issues, and investors must often sort through competing claims from the Portuguese colonial administration, the Indonesian occupation era, and the post-independence period. As of early 2012, Parliament was considering a land law that would provide a mechanism to resolve these disputes and allow the grant of full legal titles. Foreign investments in natural oil and gas, minerals, wholesaling, and retailing fall outside the scope of the Private Investment Law and are handled through different mechanisms. In the case of foreign investments that are of particular value to the national development strategy, the option of a special investment agreement is available; such an agreement must be authorized by the Council of Ministers and provides the possibility of tax reductions or exemptions, customs incentives, leases of state property, and up to a 100-percent cost sharing in the training of employees.

To read more, click on 'Timor Leste' above...

Note, several data have changed since this publication.