Current business situation

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to East Timor. This is regularly updated, and should be checked before planning travel.

Country overview

Country facts

Capital city:	Dili
Surface area:	14,874 sq km
Population:	0.9 million
Official language(s):	Portuguese, Tetum
Government:	Republic
Head of State:	President HE Dr José Ramos-Horta
Head of Government:	Prime Minister Mr Kay Rala Xanana Gusmao
Australian exports to East Timor:	A$38 million
Australian imports from East Timor:	A$1 million
East Timor's principal export destinations:	Australia, USA, Germany
East Timor's principal import sources:	Indonesia, Singapore, Australia

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Economic climate

Key economic indicators and statistics for 2006:

GDP - US$351 million
GDP per capita - US$346
Real GDP growth - -2.9 per cent
Inflation - 4.1 per cent

Many business opportunities in East Timor relate either directly or indirectly to aid funded activities. Public sector opportunities are normally funded by donor countries, including by AusAID.

The Asian Development Bank (ADB) is focused on infrastructure activities while the World Bank is focussed on social sector activities. Private sector opportunities are predominately in the services sector catering to international staff working in East Timor.

Most World Bank and ADB tender opportunities are advertised internationally but smaller value contracts might only be advertised in East Timor. East Timor Government tender opportunities are advertised in the East Timor Government website. The website is currently being redeveloped. Many other opportunities require on-the-ground intelligence to be identified.

Business services such as banking, legal and accounting remain largely unavailable. There is no collateral law and no form of regulated security against which borrowers can apply for credit. There is no insurance law or insurance providers in the market. Draft company, foreign investment and labour laws have been drafted but have been finalised. This is compounded by a lack of property rights.

Political climate

East Timor became the first new nation of the new millennium when it became the Democratic Republic of East Timor on 20 May 2002. The Head of State is H.E. President Kay Rala Xanana Gusmao.

Trade relations and statistics

Major Australian exports to East Timor (2006-07*):

• Transport vehicles - A$4 million
• Refined petroleum - A$23- A$1 million 
• Structures of iron, steel or aluminium - A$1 million 
• Prefabricated buildings - A$1 million 

*Includes A$11m of confidential items and special transactions, 30% of total exports.

Major Australian imports from East Timor (2006-07):

• Coffee and coffee substitutes - A$1030 million 
• Floor coverings - A$188 million
• Motor vehicle parts- A$74 million
• Measuring and controlling instruments - A$41 million

(Source: Department of Foreign Affairs and Trade - Country economic fact sheet)

Doing business

Business opportunities

The Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
 

Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
 

For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.

Business etiquette

Business practices:

• The handshake is the most common form of greeting in East Timor. Men shake hands when meeting a woman from a foreign culture but rarely when greeting a Timorese woman.
• Timorese traditions of clothing are modest. Garments above the knee (for both men and woman) are rarely acceptable in a professional or traditional social occation. A relaxed dress code applies with short-sleeved shirt/pants appropriate for most business meetings. Light-coloured, natural fabrics such as cotton and linen are recommended for protection against mosquitoes. More formal attire is suggested if visiting senior East Timorese business and political leaders, however, men don't need to wear coats/jackets and ties.
• Multilateral agencies and non-government organisations are generally accessible between 9.00am-5.00pm.
• Pre-arranged appointments are highly recommended as contacts frequently move around East Timor and to and from Australia, often at short notice. It's a good idea to confirm meetings a day before the scheduled time and be prepared to reschedule at the last minute.
• It is polite to wait until your host invites you to sit down, or to eat and drink.

Please also note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.

Taxation

All businesses operating in East Timor must obtain a Tax Identification Number from the Internal Revenue Service.

The three taxes assessable on exporting goods to East Timor are:

• import duty
• excise or excise equivalent duty
• sales tax

The application of the import duty is equivalent to five per cent of the customs value once it's determined. The excise or excise equivalent duty applies equally to goods imported or made in East Timor.

Business travel

Private cars doubling as taxis are readily available on the streets. Some may have the word 'taxi' written on their number plates. You should negotiate an agreed rate before proceeding.

Taxis are usually available from the airport to the city. The fare from the airport to the CBD is around A$10. Small Indonesian rupiah notes are useful for taxi fares around Dili. Payment is accepted in Australian, US or Indonesian currency.

If you expect to be travelling extensively, it's possible to negotiate a booking for a taxi for a half-day or a full day.

The only alternative to taxis is to make arrangements for a hire car. Thrifty Rental Car has an office near the airport. Some hotels offer rental cars and scooters.

Visiting this country

Security and health

The Department of Foreign Affairs and Trade (DFAT) provides advice for business travellers and tourists going to East Timor. This is regularly updated, and should be checked before planning travel.

Health

Both dengue fever and malaria are prevalent and visitors are advised to take precautions to protect themselves against mosquito attacks. The use of tropical strength inspect repellents and wearing sensible clothing at appropriate times of the day are recommended.

Bottled water is freely available and there are a number of reliable restaurants and hotels serving meals.

For visitors staying in East Timor for longer periods of time, vaccination against various diseases including typhoid, TB and cholera, along with preventative treatment for malaria is recommended.

A suitable medical contact in Darwin is:

Health Services Australia
Level 1, 43 Cavanagh St
Darwin
Tel: +61 8 8981 7492

Visas

Australian business visitors require only their passport. A 90-day entry permit is issued by the East Timor Border Control Unit at Dili airport.

Travel tips and facts

Dili airport is located approximately six kilometres from the CBD. There is a mandatory US$10 departure fee for all passengers departing Dili on commerical carriers and must be paid in US currency.

Food outlets and other stores will only accept cash as do some hotels. The more established hotels will usually accept credit cards.

For further travel information please visit Lonely Planet.

Time

East Timor is two hours behind Australian Eastern Standard Time.

To find out the current time in Dili, view the World Clock.

Dialling codes

East Timor's country code is 670

For calls to East Timor from Australia dial: 0011 + 670 + area code + telephone number

For calls from East Timor to Australia dial: 00 + 61 + area code + telephone number

For further information (eg. area codes) please visit the White Pages - international dialling codes.

Electricity

Generally in Dili, 240 volt power is available at hotels and refurbished buildings. Hotels and other organisations have their own back-up generators.

Weather

East Timor's climate is tropical with temperatures ranging from 21C to 33C, except at higher altitudes. The heaviest rainfall is recorded in December and January, although the wet season does not finish until around the end of April. Humidity ranges between 60 per cent and 100 per cent.

Currency

Oanda currency converter

The official currency is the US dollar.

Public holidays

May 1 - Labour Day 
May 20 - Independence Day 
August 15 - Assumption of the Blessed Virgin Mary 
August 29 - Constitution Day 
September 20 - Liberation day 
November 1 - All Saints Day 
December 8 - Immaculate Conception 
December 25 - Christmas Day

Useful websites and resources

Government, business and trade

AusAID - East Timor - www.ausaid.gov.au/country/country.cfm?CountryId=911
Australian Council for Overseas Aid - www.acfoa.asn.au
East Timor - www.gov.east-timor.org 

News and media

East Timor Press - www.easttimorpress.com/en/default.asp

Contact details

Austrade offices

The Australian Trade Commission (Austrade) is the Federal Government agency that helps Australian companies win overseas business for their products and services by reducing the time, cost and risk involved in selecting, entering and developing international markets.

Austrade offers practical advice, market intelligence and ongoing support (including financial) to Australian businesses looking to develop international markets. Austrade also provides advice and guidance on overseas investment and joint venture opportunities, and helps put Australian businesses in contact with potential overseas investors.

A list of Austrade offices (in alphabetical order of country) is available.

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

Australian Embassy

Avenida dos Mátires da Pátria
Dili, East Timor
Tel: +670 332 2111
Fax: +670 332 2247
Email: austemb_dili@dfat.gov.au
Web: www.easttimor.embassy.gov.au
 
Business hours:
8.00am-4.30pm, Monday to Friday

(Last updated: 30 Nov 2007)