ABSTRACT
East Timor remained a Portuguese colony until April 1974, when it was agreed by Indonesia and Australia that the best interests of the Timorese lay in Indonesian annexation. On 28 November 1975, FRETELIN announced the independence of the Democratic Republic of East Timor. In August 1976, East Timor was declared Indonesias 27th province, to be known as Loro Sae. East Timor is important because of the key issue of self-determination which seems to be an increasingly dominant theme of the post-Cold War era. Furthermore, there are large, proven oil reserves in the Timor Sea. However, there are growing concerns over the possible further fragmentation of Indonesia. As the most powerful state in South-East Asia, the stability of Indonesia is seen as critical for the continuing development of the entire region. Given the local and regional events that have followed the referendum, it seems unlikely that East Timor will not remain a flashpoint for the foreseeable future.
