JOINT STATEMENT
THIRD MEETING OF THE INDONESIA – TIMOR-LESTE

JOINT MINISTERIAL COMMISSION
FOR BILATERAL COOPERATION

Jakarta, 7-8 July 2005

1. The Third Meeting of the Joint Ministerial Commission for Bilateral Cooperation between the Government of the Republic of Indonesia and the Government of the Democratic Republic of Timor-Leste was held in Jakarta on 7-8 July 2005. The Delegation of the Government of the Republic of Indonesia was headed by H.E. Dr. N. Hassan Wirajuda, Minister for Foreign Affairs of the Republic of Indonesia, and the Delegation of the Democratic Republic of Timor-Leste was headed by H.E. Dr. José Ramos-Horta, Senior Minister and Minister for Foreign Affairs and Cooperation of the Democratic Republic of Timor-Leste. The list of the delegations appears as Annex 1.

2. Recalling the steps already taken since the second Joint Statement signed between Indonesia and Timor-Leste on 6 September 2003, both Parties recognized the importance of a strong relationship between the two countries and agree to resolve residual issues and enhance cooperation together with a friendly, reconciliatory and forward-looking outlook.

3. The Meeting recognized the momentous state visit of H.E. Susilo Bambang Yudhoyono, the President of the Republic of Indonesia, to Timor-Leste on 8-9 April 2005. Both sides noted that the signing of the Provisional Agreement on Land Boundary was a testimony of the strong relations between the two countries.

4. Both Parties expressed their disappointment towards the Report of the Commission of Experts (COE) appointed by the Secretary General. The Meeting also deliberated upon the latest developments of the Commission of Truth and Friendship (CTF). Both Parties shared the opinion that the Secretary-General’s Report of the Commission of Experts (COE) to the UN Security Council does not promote the process of reconciliation and agreed to continue with joint efforts to begin the work of the CTF within the time frame that was agreed upon. Furthermore, both Parties reiterated their commitment to ensuring the credibility, accountability and transparency of the work of the CTF.

5. The Timor-Leste Delegation expressed its gratitude for the Indonesian Government’s support for Timor-Leste becoming a participant in the ASEAN Regional Forum (ARF).

6. The Timor-Leste Delegation also expressed its gratitude for the provision of protocol facility for Timor-Leste officials transiting in Bali.

7. Both Parties condemned the terrorist attacks that took place in London on 7 July 2005 and expressed deep sympathy for the loss of innocent lives.

8. Both Parties were of the view that UN reform should be conducted in a comprehensive manner so that it may effectively cope with the challenges of the 21st Century. Timor-Leste supports Indonesia’s bid for a permanent seat in the UN Security Council based not only on the fact that Indonesia has the full credentials to represent Asia and the Pacific as well as being one of the largest civilizations and faith communities, but also on its consistent contribution to regional and international peace and security.

9. Both Parties acknowledged the resolution of the refugee issue.

10. The Timor-Leste Delegation conveyed its appreciation to the Government of Indonesia for their technical assistance in providing training in protocol matters for officials of the Ministry of Foreign Affairs and Cooperation, Democratic Republic of Timor-Leste.

BORDER ISSUES

11. The Meeting agreed that pursuant to Article 2 of the the Provisional Agreement on Land Boundary, the process of further delineating borders will be conducted through surveys in Mota Tiborok, Kalan Fehan, Tahi Fehu, Uas Lulik and Fatu Rocon. The Meeting agreed to discuss ways and means to settle the 4% of the unresolved segments of the Indonesia - Timor-Leste boundary. The Meeting agreed that the upcoming meeting of the TSC on Border Demarcation and Regulation (TSC-BDR) shall informally explore ways and means to facilitate the early solution of the matter.

12. Both sides also agreed that pursuant to Article 3 of the Agreement, the placement of markers will be carried out in: a) populated areas, b)markets, c) main roads, and d) mouths of rivers. In this relation, the two sides agreed that the placement of the first marker will be in Motaain.

13. On the issue of border security, the Meeting agreed to negotiate the draft Arrangement on Coordination and Cooperation for Border Security between Indonesia and Timor-Leste proposed by Indonesia could be signed as soon as possible in order to replace the border security arrangement that has expired on 26 June 2005.

14. Regarding follow-up action on the Arrangement on Traditional Border Crossing on Regulated Markets, the Meeting agreed that discussion on the technical matters to follow up the said Arrangement will commence in the near future. The Meeting agreed to assign the TSC on Cross Border Movement of Persons and Goods, and Crossings to discuss the implementation of this Arrangement.

15. Regarding follow up action on the technical arrangement on the coordination of the measure to facilitate the movement of people and their personal effects between the enclave of Oecussi and other parts of Timor Leste, the two sides agreed that the TSC on Cross Border Movement of Persons and Goods and Crossings will meet as soon as possible to discuss the technical implementation of the Arrangement.

16. Regarding the Memorandum of Understanding between the Indonesian National Police and the Republic Democratic of Timor-Leste National Police, Indonesia proposed that the MoU could be signed at the closing ceremony of the training for PNTL in Indonesia. The Timor-Leste stated that is currently preparing the counter-draft and would convey it to Indonesia as soon as possible.

17. Regarding the proposed draft Agreement on Coastal Traffic of Non Solas Vessels. the Meeting took note of the draft proposed by Timor-Leste and agreed that the TSC on Cross Border Movement of Persons and Goods shall discuss the issue as soon as possible

18. In its review of the Technical Sub-Committees, the Meeting also agreed to revitalize the Border Liaison Committee in addressing border issues of common concern by conducting its discussion on health, veterinary and livestock to facilitate the meeting of TSC on health, veterinary and livestock.

19. Regarding other matters pertaining to border issues, the Meeting took note of the proposal by Timor-Leste to commence discussions on maritime boundary delimitations.

LEGAL MATTERS

20. Both Parties recalled the recognition of the principle of international law that private individuals and corporations should have their legal rights duly recognized, as agreed upon in the Second Meeting of the Indonesia – Timor-Leste Joint Ministerial Commission for Bilateral Cooperation.

21. Regarding the establishment of the Timor-Leste Technical Subcommitee (TSC) on Assets, the Timor-Leste delegation proposed 3 (three) months time to consult it with their Government. The Indonesian delegation took note of Timor-Leste’s efforts to to set up a mechanism regulating land right matters.

22. Both Parties agreed to deliberate further on the status of PT. Pertamina’s fuel depot asset, with a view to finding a mutually-acceptable solution to the matter. Timor-Leste acknowledged PT. Pertamina’s technical difficulties in relocating its depot to another area in Timor-Leste. Timor-Leste also took note of Indonesia’s request that the status of assets belonging to Indonesian companies be settled through the TSC on Assets.

23. Both Parties agreed to discuss further the establishment of a mechanism with regard to the judicial cooperation and extradition for the perpetrators of terrorism as well as cooperation in the field of the prevention of human and drug trafficking and mutual legal assistance.

24. Regarding the payment of pensions, Both Parties agreed to conclude a new arrangement to replace the Arrangement between the Government of the Republic of Indonesia and the United Nations Transitional Administration in East Timor on the Implementation of Payments of Pensions during the Transition Period to Eligible Former Civil Servants, Members of the Police (Polri) and Armed Forces of the Republic of Indonesia (TNI) from East Timor, signed on 10 July 2001, which has been terminated with the end of the UNTAET mandate.

TRADE, INVESTMENT AND FINANCE

25. Regarding trade cooperation, the Parties agreed to work together to enhance and increase the trade volume between the two countries. The two sides agreed to consider the possibility of establishing a bilateral trade agreement.

26. Regarding investment issues, Timor-Leste expressed its desire to attract more Indonesian investment. Its external investment policy provides special incentives. Both Parties agreed to share experience and knowledge in investment policy-making.

27. Timor-Leste expressed its appreciation for new offers of technical assistance and capacity-building in the area of public finance and oil sector taxation training for officials from the Ministry of Finance of Timor-Leste.

28. Both Parties agreed to consider the MoU between the Government of the Republic of Indonesia and the Government of the Democratic Republic of Timor-Leste on Customs Administration. The Meeting took note of the existence of two Indonesian training centers in the border area which could be made available to Timor-Leste.

TRANSPORT AND COMMUNICATIONS

29. Both Parties expressed their disappointment over the negative travel advisory issued by the UN against Merpati Airlines which bans it use by UN employees and contractors. Timor-Leste’s Senior Minister for Foreign Affairs publicly expressed his disapproval of the decision. The Meeting agreed for both sides to pursue joint efforts in persuading the UN to revoke the said travel advisory.

30. Both Parties agreed to enhance cooperation in communications, specifically through Timor Telecom and PT Telkom Indonesia.

31. Both Parties have initialized the MoU on Postal services at the technical level and agreed to sign it as soon as possible.

32. Both Parties agreed to hold future discussion on cooperation regarding traffic control procedures, air navigation service, maintenance, and other relevant issues on Civil Aviation; and communication frequencies

SOCIAL, EDUCATION AND CULTURAL

33. The meeting agreed to enhance cooperation in education. The Indonesian delegation took note of Timor-Leste’s proposal to establish a Working Group on Education, Youth and Sports that would meet at least twice a year, in Indonesia and Timor-Leste alternatively.

34. The Indonesian delegation expressed its appreciation to the Timor-Leste Government for its willingness to assist in the maintenance of Indonesian Heroes Cemeteries located Timor-Leste, at the expense of the Government of Indonesia, and to facilitate access to the cemeteries by family members

35. The Parties discussed the issue of missing persons and reiterated the efforts made by the two parties to find an acceptable solution to the issue.

36. The Indonesian delegation will begin the process of establishing a Task Force for Separated Children as agreed upon by Indonesia – Timor-Leste MoU on Separated Children, signed on 11 December, 2004.

37. The Timor-Leste Delegation welcomed Indonesia’s offer of technical assistance in pollution control training, which would be funded by a third party.

38. Both Parties agreed to sign the Agreement on Cultural and Educational Cooperation between Indonesia and Timor-Leste.

OTHER MATTERS

39. Both Parties took positive note of Timor-Leste’s plan to open Consulates in Denpasar and Kupang.

40. The next JMC Meeting will be held in Dili at a date to be communicated through diplomatic channels.

Done in Jakarta on 8th July 2005

For the Government of the Republic of Indonesia

Dr. N. Hassan Wirajuda
Minister for Foreign Affairs

For the Government of the Democratic Republic of Timor-Leste

Dr. José Ramos-Horta
Senior Minister and Minister for Foreign Affairs and Cooperation