Timor-Leste

Timor-Leste’s modest economy is dominated by the petrochemical sector, which accounts for the vast majority of GDP. Government spending accounts for around 90 per cent of the economy and 85 to 90 per cent of Timor-Leste’s revenue comes from oil and gas. Remittances, agriculture, fisheries and tourism are other important sectors for the economy. Diversifying the economy is a key priority for Timor-Leste’s government, which has a stated ambition to scale up blue and green economies.

Remittances from Timorese workers overseas – including those in Australia under the Pacific Australia Labour Mobility scheme – are the largest non-petroleum contributor to the economy. Since 2012, Timorese participants in Australian labour mobility programs have sent home more than AUD104 million in remittances.

Australia has been at the forefront of international support for Timor-Leste since independence in 2002 and remains Timor-Leste’s largest development partner, with an estimated AUD123.3 million in total Official Development Assistance in 2024-25. Australia has a strong interest in Timor-Leste’s stability, security and prosperity. Australia is committed to being an effective, responsive and long-term partner and we continue to adapt our development partnerships to meet Timor-Leste’s priorities. The Australia – Timor-Leste Development Partnership Plan 2025-2030 sets out the development priorities Australia shares with Timor-Leste.

Australia’s economic partnership with Timor-Leste is also growing. In 2023, two-way merchandise trade between Australia and Timor-Leste was worth AUD242.9 million. Australian exports to Timor-Leste totalled AUD132 million with major items including business travel and passenger motor vehicles. Imports from Timor-Leste totalled AUD110.9 million, including recreational and business travel, and coffee. An increasing number of Australian-related businesses are operating in Timor-Leste, covering financial services, oil and gas, shipping, trade, manufacturing and services.

The AIFFP in Timor-Leste

Australia’s investment in Timor-Leste, through the Australian Infrastructure Financing Facility for the Pacific (AIFFP), includes:

Infrastructure sectors: airports and aviation; off-grid renewable energy; and telecommunications and digital

Partners (A-Z): Asian Development Bank; Australian Government’s Partnerships for Infrastructure program; Engineers Without Borders Australia; Government of Democratic Republic of Timor-Leste; International Finance Corporation; Japan International Cooperation Agency; Mara Mresa; Master Electricians Australia; MEA Power Up; Raw Material; and Vocus Group

Projects (A-Z):

Australian Embassy, Dili

Rua Martires da Patria
Dili
Phone: +670 3322 111
Email: austemb_dili@dfat.gov.au

For more information on Australia and Timor-Leste’s diplomatic relations, see the DFAT website.