16 of September of 2026Meeting of the Council of Ministers on September 16th, 2026Presidency of the Council of Ministers
Spokesperson of the Government of Timor-Leste
Ninth Constitutional Government
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Press Release
Meeting of the Council of Ministers on September 16th, 2026
The Council of Ministers met at the Government Palace in Dili and began the meeting with presentations by the Governor of the Central Bank of Timor-Leste (BCTL), Hélder Lopes, on the Petroleum Fund’s performance for the first half of 2026, the Economic Review for the first half of 2026, and the findings of the Mutual Evaluation Report on measures to combat money laundering and terrorist financing in Timor-Leste.
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At the end of June 2026, the Petroleum Fund had a balance of approximately US$18.43 billion, compared with US$18.31 billion at the end of the first quarter. In the second quarter, the Fund’s investments generated a return of approximately US$719 million, driven mainly by equity performance. In the first half of the year, the Fund transferred US$800 million to finance expenditure under the General State Budget. The presentation also highlighted the decline in oil revenues and the growing importance of investment income for sustaining and preserving the Fund’s assets.
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Next, the results of the Mutual Evaluation carried out by the Asia-Pacific Group on Money Laundering (APG) were presented; this assessed the extent to which Timor-Leste complies with international standards on combating money laundering and the financing of terrorism.
The assessment concluded that Timor-Leste fully or largely complies with 22 of the 40 recommendations of the Financial Action Task Force (FATF), whilst a further 12 are partially complied with. Areas requiring strengthening were also identified, particularly in supervision, prevention, investigation, asset recovery and confiscation, and the imposition of financial sanctions. In this context, measures to address the assessment’s recommendations were also discussed, including strengthening the legal and institutional framework, updating the national risk assessment, improving coordination between the relevant authorities, and implementing a national strategic plan.
Following the presentation, the Council of Ministers endorsed the recommendations of the National Commission for the Implementation of Measures to Combat Money Laundering and the Financing of Terrorism (CNCBC), led by the Minister of Justice, Sérgio de Jesus Fernandes da Costa Hornai, regarding the adoption of the 2024 Mutual Evaluation Report on Timor, the National Strategic Plan 2025–2028, and the 2025 National Risk Assessment Report and its annexes, as well as authorising the publication of the latter.
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With regard to the performance of the national economy, the presentation highlighted a favourable growth outlook, with real non-oil GDP projected to grow by 5 per cent in 2026, supported by public consumption and investment, household consumption, and the gradual recovery of private investment. Inflation remained low, at 0.5 per cent in June, whilst lending to the private sector continued to grow. Non-oil revenue increased by 9.2 per cent in the first half of the year, compared with the same period last year, to around US$130 million, with income tax revenues accounting for 85.5 per cent of domestic revenue. Challenges were also highlighted, including high dependence on imports, limited domestic production capacity, and the current account deficit, which reached US$374.1 million in the first half of the year.
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The Council of Ministers has endorsed the publication of the Summary Report on Poverty in Timor-Leste, presented by the Vice-Minister of Finance, Regina de Jesus. The report, drawn up on the basis of the findings of the 2024 Timor-Leste Living Standards Survey (TLSLS), provides up-to-date data on the incidence and characteristics of poverty in the country.
The results indicate that the national poverty rate fell from 41.8 per cent in 2014 to 37 per cent in 2024, a reduction of 4.8 percentage points over the last decade. Poverty remains more prevalent in rural areas, where it affects 45.5 per cent of the population, compared with 18.4 per cent in urban areas; differences are also evident across municipalities.
Following the publication of the summary report, INETL, IP and the Ministry of Finance, with support from the World Bank, will conduct a Poverty and Equity Assessment, based on data from the TLSLS 2024, to deepen the analysis of the factors contributing to poverty reduction and to support the formulation of evidence-based public policies geared towards more inclusive and resilient economic growth.
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The Council of Ministers has approved the draft Decree-Law, presented by Agio Pereira, Minister of the Presidency of the Council of Ministers, on the System for the Selection and Appointment of Lawyers to Represent the State in Legal Proceedings.
This Decree-Law sets out the procedure for selecting and appointing a lawyer or law firm to ensure the State’s legal representation and defence before the courts and arbitral tribunals, particularly in cases where the particular complexity or significance to the State warrants the use of specialist legal representation.
These include, amongst others, cases of high factual or technical complexity; those involving highly specialised matters; those before foreign courts, arbitral tribunals, or international bodies; those that may have a significant financial impact on the General State Budget; or those involving classified, confidential, or sensitive information. The classification of a case as being of particular complexity or significance is made by a reasoned order of the Prime Minister, following a proposal from the member of the Government who assists him in the Presidency of the Council of Ministers, the member of the Government responsible for the relevant area, or the entity with an interest in the case.
The lawyer to be engaged must have at least five years’ experience in the subject matter of the case and be proficient in at least one of the official languages. In cases taking place abroad or conducted in a foreign language, they must be proficient in the language used in the proceedings. The legislation also sets out rules to prevent conflicts of interest in the engagement process.
The Prime Minister appoints the legal representative by reasoned order and may delegate this power to the member of the Government who assists him in the Presidency of the Council of Ministers. In urgent cases, that member of the Government may make the appointment and shall inform the Prime Minister thereof. With the adoption of this legislation, Decree-Law No. 16/2012 of April 4th, on the Representation of the State in Court, is hereby repealed.
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The Vice Minister for ASEAN Affairs, Milena Rangel, gave a presentation to the Council of Ministers on the outcomes of the ASEAN Senior Officials’ Meeting (SOM), held on September 9th, 2026, in the Philippines, and on the current status of Timor-Leste’s preparations to assume the ASEAN Chair in 2029. During the meeting, nine Member States expressly expressed their support for Timor-Leste’s Chairmanship in 2029; the matter is to be submitted to the ASEAN Coordinating Council for consideration at the 49th ASEAN Summit in Manila in November. The presentation also addressed national preparations in terms of infrastructure, logistics and human resource capacity-building, as well as the measures required to mobilise investment and strengthen national preparations for the Chairmanship.
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Following Vice Minister Milena Rangel’s presentation, the Council of Ministers resolved to endorse the strategic use of Artificial Intelligence, Knowledge Graphs, Digital Twins and Predictive Intelligence as tools to support Timor-Leste’s preparation for and exercise of the ASEAN Chairmanship in 2029. Authorisation was also granted for a pilot project for the Anunnai platform, designed to integrate and analyse information on Chairmanship preparations, support the monitoring of projects and outcomes, identify risks and potential delays, and provide information to support decision-making.
The ASEAN Chair National Organising Committee (ACNOC), through the National ASEAN Secretariat (NAS), will be responsible for coordinating the pilot project, in collaboration with the relevant authorities, as part of preparatory measures in the field of Artificial Intelligence, including the AI Readiness Task Force. The project will be implemented in phases and will be subject to governance, cybersecurity, data protection, and human oversight mechanisms. The results, costs, benefits, and risks of the pilot project will be assessed prior to any potential expansion, with the AI Readiness Task Force responsible for presenting the findings and recommendations for the next phase to ACNOC. END
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