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East Timor’s policy of appeasement towards Indonesia

By Dionisio Da Cruz Pereira - posted Wednesday, 15 April 2009


First, security has been one of the main reasons why pursuing appeasement with Indonesia is necessary. Security is central for the survival of East Timor as a nation and the only way to maintain peace and stability in East Timor is to strengthen friendly relations with its neighbouring countries, notably Australia and Indonesia.

Since gaining its independence in 2002, East Timor has constantly faced security risks posed by the large presence of militia groups along the border. Though threats from the militia have now reduced, other security problems remain.

Transnational crimes such as human trafficking, drugs, money laundering, terrorism and prostitution are also among the major concerns for East Timor. Then there is disease. AloLa Foundation, a prominent women’s organisation recently claimed that human trafficking is a growing problem in East Timor. Combined factors such as high unemployment and the desire to work abroad have given easy access to traffickers to lure their victims near the border. AloLa claims that traffickers have recruited women to work in Indonesia, Malaysia and other countries in Southeast Asia.

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So far there has beena low incidence of HIV-AIDS in East Timor with the East Timor Ministry of Health reporting only 43 cases. However, given the country’s lack of proper surveillance facilities to monitor the spread of the disease, more people could have been infected.

Furthermore, social factors such as massive social dislocation, cross-border migration, high unemployment, and a weak and limited health system could dramatically increase the spread of HIV infection.

Knowing the magnitude of the security threats, in addition to the inability of the East Timor government to overcome those problems, means that establishing friendly relations between East Timor and Indonesia is sine qua non. Only through bilateral co-operation can such problems be minimised.

Second, economic trade with Indonesia is another contributing factor to be considered. Assessing the causes of the rise of the consumer price index in East Timor after separation from Indonesia in 2000, the World Bank advised that East Timor needs to engage in trade with Indonesia. Restarting the flow of goods and services, including an agreement on border trade with Indonesian-controlled West Timor, is necessary to revive the country’s economy.

The pursuit of economic trade with Indonesia helps East Timor to jump-start its dormant economy. Currently, East Timor is relying heavily on Indonesia for the import of cheap commodities such as food, textiles, agricultural machinery, fertilisers, building materials and other goods which would be expensive if bought from Australia

Under the current government led by Xanana Gusmao, many initiatives have been taken to encourage Indonesian investors to invest in East Timor. Last year, a group of delegates led by the East Timor Prime Minister, Xanana, headed to Jakarta to hold talks with Indonesian business communities to find ways to encourage future investment in East Timor.

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Apart from economic trade, friendly relations with Indonesia have helped the East Timorese to gain access to an affordable educational system, especially for low income families. It is estimated that more than 1,000 East Timorese are studying on family support at various universities in Indonesia. Many of them have completed their studies and have returned to East Timor and are now working in various government institutions.

In a country where poverty and unemployment are widespread, it is understandable that the government is pursuing economic development and treats this as more important than addressing justice.

Third, regional co-operation with the rest of Asia is another equally important consideration. There are two reasons for East Timor to join ASEAN. First, it allows East Timor access to regional free trade. The full engagement of East Timor in trade with ASEAN will boost the East Timor economy, which, in turn, contributes to the reduction of poverty and unemployment. Second, membership will give East Timor leverage in dealing with its largest, and closest neighbour, Australia.

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About the Author

Dionisio Da Cruz Pereira is pursuing an M.Sc in International Development at the University of Birmingham, United Kingdom.

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