Timor-Leste and the European Union sign agreements to modernise the justice system and promote sustainable business
On May 29th, 2026, the Government of Timor-Leste and the European Union signed two financing agreements totalling €9 million (approximately US$10.48 million) to modernise the judicial system and promote the sustainable development of the private sector. The ceremony took place in the Grand Hall of the Ministry of Foreign Affairs and Cooperation in Dili, as part of the official visit to Timor-Leste by Pēteris Ustubs, Director for Asia and the Pacific at the European Commission’s Directorate-General for International Partnerships. 
The agreements formalise funding for the programmes “E-Governance for the Judicial System in Timor-Leste” (e-JUS TL), with €6 million in support (approximately US$6.99 million), and “Creation and Development of Sustainable Businesses and the Circular Economy” (CRESCE), funded with €3 million (approximately US$3.49 million).
On behalf of the 9th Constitutional Government, Vice Prime Minister and Coordinating Minister of Economic Affairs, Minister of Tourism and the Environment Francisco Kalbuadi Lay signed the agreement on the CRESCE programme, while Minister of Justice Sérgio de Jesus Fernandes da Costa Hornai signed the agreement on the e-JUS TL project. The agreements were signed with the European Union, represented by the European Union Ambassador to Timor-Leste, Thorsten Bargfrede.
At the opening session, the Minister of Foreign Affairs and Cooperation, Bendito dos Santos Freitas, emphasised that the two agreements reflect the strength of the partnership between Timor-Leste and the European Union and their shared commitment to sustainable development. The Minister also emphasised that both initiatives align with the 2011-2030 Strategic Development Plan and the priorities of the 9th Constitutional Government’s Program, contributing to economic diversification, the promotion of good governance, institutional strengthening, and human capital development.
During the ceremony, the Vice Prime Minister said that these agreements mark “an important step towards sustainable development, good governance, and the modernisation of public institutions in Timor-Leste,” and emphasised that the partnership between Timor-Leste and the European Union reflects a shared commitment to inclusive economic growth, transparency, and environmental sustainability.
The CRESCE programme aims to support the creation and development of sustainable micro, small, and medium-sized enterprises, with a particular focus on the circular economy, agroforestry, sustainable tourism, fisheries, and other sectors with growth potential. The initiative also includes measures to improve access to credit for women, young people, and local entrepreneurs, thereby contributing to economic diversification, job creation, and regional development outside major urban centres.
In his speech, Francisco Kalbuadi Lay emphasised that the initiative will support the transition to more sustainable production and consumption models and help create new economic opportunities for communities, particularly for young people and women entrepreneurs.
The e-JUS TL project aims to modernise and digitise the Timorese judicial system by implementing e-governance solutions to improve the efficiency, accessibility, and transparency of justice services. The initiative includes the digitisation of court proceedings, the enhancement of interoperability among courts and other justice sector institutions, and the training of judges, public defenders, court officers, and other professionals in the field.
The Minister of Justice emphasised that the project represents “a historic milestone and a decisive step towards the modernisation of the Timorese state,” adding that the main objective is to establish an integrated digital justice system that links courts, the Public Prosecutor’s Office, the Public Defender’s Office, the police, and civil registry services. According to the minister, the initiative will improve access to justice, including in rural areas, while strengthening citizens’ trust in judicial institutions.
The two programmes are part of the cooperation framework between Timor-Leste and the European Union, established by the 2021–2027 Multiannual Indicative Programme, and fall under the European Union’s Global Gateway Strategy. The initiatives align with the 2011-2030 Strategic Development Plan, the Programme of the 9th Constitutional Government, and the priorities associated with Timor-Leste’s regional integration into ASEAN, contributing to the modernisation of public administration, digital transformation, the strengthening of the rule of law, and the promotion of sustainable economic growth.
The ceremony was attended by representatives of the European Union Delegation, members of the diplomatic corps, judges, legal professionals, and representatives of other national and international organisations involved in governance, development, and cooperation.
