Timor-Leste and Indonesia sign bilateral investment pact
The agreement sets out investment protections and measures to improve transparency, simplify procedures and resolve potential disputes.
Timor-Leste and Indonesia signed an investment agreement in Jakarta on 15 October 2026, setting out a framework intended to encourage investment between the countries and deepen economic cooperation.
The signatories were Timor-Leste’s Vice-Prime Minister Francisco Kalbuadi Lay and Indonesia’s Investment Minister Rosan Perkasa Roeslani. According to TATOLI, the pact aims to give investors clearer protections, more transparent procedures and mechanisms to address potential disputes.
The agreement provides for sharing information about investment opportunities and building closer connections between the two countries’ private sectors. Cooperation priorities include renewable energy, manufacturing, digital technologies, infrastructure and logistics.
The signing followed a commitment by both governments in 2023. Formal talks started in November 2024, with a legal review completed in August 2025. Timor-Leste’s Council of Ministers considered a presentation on the pact on 7 October 2026.
The Timorese delegation was visiting Indonesia for the 41st Trade Expo Indonesia 2026, which ran from 14 to 18 October. Kalbuadi Lay also held talks with Indonesian Trade Minister Budi Santoso about broader bilateral trade, market access and business cooperation.
Separate discussions between the countries’ vice-ministers covered opportunities to expand trade and promote products, including Timorese coffee and cloves, which could benefit from better access to Indonesia’s market.
Indonesia accounted for about 76 per cent of Timor-Leste’s trade with ASEAN in 2025, making it the country’s largest trading partner within the bloc. Bilateral trade amounted to US$423.63 million in 2025 and US$273.86 million from January to August 2026.
