Dili, 28 July 2026 – The Governments of Australia and Timor-Leste have reaffirmed their commitment to supporting Timor-Leste’s economic and institutional reform agenda through the second phase of the Partnership for Inclusive Prosperity (PROSIVU), following the program’s annual Steering Committee meeting, co-chaired by the Minister of Finance, Santina Viegas Cardoso, and the Australian Ambassador to Timor-Leste, Caitlin Wilson, on 28 July 2026.
Building on the achievements of Phase One (2022–2026), PROSIVU Phase Two (2026–2028) will continue its partnership with the Government of Timor-Leste to support Timor-Leste’s objectives to strengthen public institutions, improve economic governance, modernise public administration, enhance public financial management and support Timor-Leste’s deeper regional integration through ASEAN. Together, these reforms aim to create more economic opportunities, strengthen public services and ensure that public resources deliver lasting benefits for the people of Timor-Leste.
Australian Ambassador to Timor-Leste, Her Excellency Ms. Caitlin Wilson, said the second phase of PROSIVU reflects the enduring partnership between Australia and Timor-Leste and their shared commitment to supporting Timor-Leste’s long-term development priorities.
“Australia and Timor-Leste share a strong and enduring partnership, grounded in our commitment to a peaceful, stable, prosperous and resilient future. Through PROSIVU Phase Two, we will continue working together to strengthen institutions, expand economic opportunity and support inclusive development that benefits all Timorese people.”
The Australian Government will also continue supporting reforms that strengthen Timor-Leste’s business environment through investment and trade promotion, tourism development, online business registration and economic reform coordination. Phase Two will additionally support women’s economic empowerment, disability-inclusive services and improved digital connectivity. A key priority remains helping Timor-Leste to realise the benefits of ASEAN membership through implementation of the ASEAN Economic Community Roadmap, meeting ASEAN standards and commitments, attracting investment and trade, and delivering English language training for government officials.
Australia’s partnership with the Ministry of Finance continues to strengthen public financial management to ensure that public resources are deployed to help grow the Timorese economy, support jobs and improve public services. Our work together is also supporting civil service reform through strategic assistance to the Civil Service Commission, enhancing systems and supporting the development of a Gender Equality, Disability and Social Inclusion Strategy for the Timor-Leste public service.
Timor-Leste’s Minister of Finance, Her Excellency Ms. Santina Viegas Cardoso, thanked the Government of Australia for its continued partnership and said:
“On behalf of the Government of Timor-Leste, I thank the Government of Australia for its commitment to this work. I am confident that, with continued collaboration and clear priorities, Phase Two will deliver tangible benefits for the Timorese people.”End
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Press Release
Meeting of the Council of Ministers on July 29th, 2026
The Council of Ministers met at the Government Palace in Dili and approved the Government’s proposed resolution, presented by the President of the Civil Service Commission, Agostinho Letêncio de Deus, to suspend recruitment of civil servants and public administration employees, as well as the hiring of “temporary workers”.
The aim of this draft Government Resolution is to limit the continued growth of the public administration—which has occurred without a rigorous selection process and has been based solely on actual needs—because this has resulted in a considerable increase in budgetary expenditure.
This draft Government Resolution provides for exceptions to hiring for Ministerial Offices, to merit-based selection processes for management and leadership positions, and to career tracks or professional groups with vacancies and budgets approved in the previous year, as well as for university faculty and healthcare professionals, justified by staff shortages.
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The Council of Ministers approved the draft Decree-Law, presented by the Secretary of State for Social Communication, Expedito Dias Ximenes, on the public subsidy programme for media outlets.
The purpose of the draft Decree-Law is to strengthen the sector’s sustainability, ensure the free flow of information, and promote pluralism and diversity of opinion.
This is a government initiative designed to support media organisations on objective, transparent, and non-discriminatory criteria, without compromising their editorial independence or freedom of information and of the press.
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The Council of Ministers, following a proposal from the Minister of Defence, Donaciano do Rosário Gomes, decided to approve the Framework Program for Cooperation between Timor-Leste and Portugal in the Field of Defence for the period 2025–2028.
This Framework Cooperation Program aims to strengthen bilateral defence cooperation between Timor-Leste and Portugal, promoting political and strategic dialogue and the development of the institutional, technical, and operational capabilities of the National Defence and FALINTIL—Timor-Leste Defence Forces (F-FDTL). The Programme provides for training, education, and professional development initiatives for personnel in Timor-Leste and Portugal, as well as the strengthening of good governance in the defence sector and the operational capabilities of the naval, land, and air components.
The Program also covers cooperation in strategic areas such as military health, maritime security and state authority at sea, participation in peacekeeping and humanitarian missions, crisis management and response to natural disasters, as well as in the fields of cyber defence, information technology, cartography, hydrography, oceanography, the defence industry, climate change, and the “Women, Peace, and Security” agenda. It also provides for deepening political dialogue on maritime security and for promoting trilateral cooperation initiatives with other states or with international, regional, and subregional organisations.
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The Council of Ministers, also upon a proposal by the Minister of Defence, Donaciano do Rosário Gomes, decided to approve the Memorandum of Understanding with the Portuguese Ministry of Defence on the Portuguese capacity-building mission in the Democratic Republic of Timor-Leste.
This Memorandum of Understanding aims to strengthen and deepen bilateral defence cooperation by consolidating and expanding the temporary advisory missions provided for in the Framework Program for Defence Cooperation, and by promoting training, education, and development initiatives that enhance the operational capabilities of the National Defence and FALINTIL — the Timor-Leste Defence Forces (F-FDTL).
The Memorandum also establishes a framework for cooperation to develop the F-FDTL’s capabilities in strategic areas, specifically in military higher education, military health, command and control, military situational awareness, and the employment of naval, land, and air components, as well as to strengthen capabilities in materiel, equipment, and infrastructure, in accordance with the priorities defined by both Parties. The instrument also provides for the implementation of other capacity-building initiatives that may be agreed between the two States, in line with the common objectives of modernisation and institutional development in the defence sector.
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Following a proposal by the Minister of Petroleum and Mineral Resources, Francisco da Costa Monteiro, the Council of Ministers decided to accept:
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Lastly, the Council of Ministers reviewed the Report on the participation of the Timor-Leste delegation in the 30th ASEAN-Republic of Korea Dialogue Meeting, held on July 6th and 7th, 2026 in Seoul, presented by the Minister of Foreign Affairs and Cooperation, Bendito dos Santos Freitas, and the Vice Minister for ASEAN Affairs, Milena Rangel. The meeting was particularly significant as it marked the first ASEAN–Republic of Korea Dialogue following Timor-Leste’s full accession to ASEAN, allowing the country to participate for the first time as the 11th member in defining the strategic priorities of the ASEAN-Republic of Korea Comprehensive Strategic Partnership and in implementing the Action Plan for the period 2026–2030.
As part of the proceedings, Timor-Leste presented its national priorities under the ASEAN Integration Initiative, emphasising the need to reduce development disparities, strengthen institutional capacities, develop human capital, advance digital transformation, and prepare for Timor-Leste’s ASEAN Chairmanship in 2029. The Republic of Korea reiterated its commitment to supporting Timor-Leste through Official Development Assistance programmes, the ASEAN-Korea Cooperation Fund, and other initiatives aimed at institutional strengthening, human resource development, modernising digital infrastructure, the energy transition, sustainable development, and preparations for the future ASEAN Chairmanship.
The priorities presented by the Timorese delegation also highlighted the need to accelerate the implementation of the ASEAN Integration Initiative, to strengthen the country’s preparedness for the digital economy and artificial intelligence, to promote technical and vocational training and the creation of employment opportunities for youth, as well as to strengthen climate resilience, energy security, and the institutional capacities necessary to hold the ASEAN Chairmanship in 2029, in accordance with the ASEAN Community Vision 2045.
The dialogue also reinforced Timor-Leste’s role as an active and constructive partner in implementing the ASEAN Community Vision 2045, identifying new opportunities for cooperation in strategic areas such as governance and institutional strengthening, technical capacity building and human resources development, the digital economy, artificial intelligence and technological innovation, the development of small and medium-sized enterprises, renewable energy, sustainable infrastructure, and climate resilience. These initiatives align with the priorities of the 9th Constitutional Government and will help accelerate the country’s economic and social development, strengthen national competitiveness, and ensure Timor-Leste’s full and effective integration into ASEAN. END
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