Timor-Leste, Indonesia sign agreement on promotion and protection of investments
DILI, 19 October 2026 (TATOLI) – Timor-Leste and Indonesia have signed a bilateral agreement to promote and protect investments, establishing a framework to facilitate investment flows and strengthen economic cooperation between the two countries.
The agreement was signed in Jakarta on 15 October by Timor-Leste’s Vice-Prime Minister and Minister Coordinator for Economic Affairs and Minister of Tourism and Environment, Francisco Kalbuadi Lay and the Indonesia’s Minister of Investment and Head of the Investment Coordinating Board, Rosan Perkasa Roeslani.
The deal aims to create more favourable conditions for investors through clearer investment protection rules, streamlined procedures, greater transparency and mechanisms for resolving potential disputes.
It builds on a commitment made by the two governments in 2023. Formal negotiations began in November 2024, and the legal review of the agreement was completed in August 2025.
Timor-Leste’s Council of Ministers reviewed a presentation on the agreement at its meeting on 7 October 2026, ahead of the signing.
The agreement focuses on three key areas: promoting a favourable investment environment, facilitating investment through greater transparency, more efficient procedures and closer cooperation, and protecting investments through clear rules on their treatment and stronger legal certainty.
It also provides for the exchange of information on investment opportunities and stronger links between the private sectors of both countries.
Priority areas for cooperation include manufacturing, infrastructure, renewable energy, logistics and digital technologies.
The agreement was signed during a visit by a Timorese delegation to Indonesia for the 41st Trade Expo Indonesia 2026, held from 14 to 18 October.
Alongside the event, Kalbuadi Lay met Indonesian Trade Minister Budi Santoso to discuss diversifying bilateral trade, expanding market access and strengthening cooperation between businesses in both countries.
Timor-Leste’s Vice-Minister of Trade and Industry, Augusto Júnior Trindade, also met his Indonesian counterpart, Dyah Roro Esti, to explore opportunities to increase trade and promote products from both countries.
Discussions included Timorese coffee and cloves, which could benefit from stronger commercial links and improved access to the Indonesian market.
Timor-Leste’s Minister of Transport and Communications, Miguel Marques Gonçalves Manetelu, Trindade and Timor-Leste’s ambassador to ASEAN also attended the signing ceremony.
The agreement marks a further step in efforts by Dili and Jakarta to strengthen economic ties, encourage cross-border investment and expand opportunities for businesses in both countries.
Indonesia is Timor-Leste’s largest trading partner among ASEAN member states, accounting for about 76% of the country’s trade with the regional bloc in 2025.
Bilateral trade reached US$423.63 million last year. From January to August 2026, trade between the two countries totalled US$273.86 million.
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