ABSTRACT
This chapter explores the idea of developing a Special Economic Zone (SEZ) in Oecusse from early mention in 2000 during the immediate post-Indonesian era, through to its formal declaration in 2013. It discusses the changing elements of and reasons for an Oecusse SEZ, focusing on three aspects. First, the directionality of resource flows. Second, how SEZ design indicates the project’s intended beneficiaries. Third, how iterations of proposed governance arrangements reflect the different expectations of Oecusse residents and others for local representation and leadership in the district. When Timor-Leste launched the Special Economic Zone of Social Market Economy (ZEESM) in the Oecusse-Ambeno enclave in mid-2013, it seemed to many that this fiscally massive and sectorally undefined initiative appeared virtually out of nowhere. Despite appearances, ZEESM did not appear out of thin air, but can be understood as the finally realized manifestation of over a decade of efforts to enact “special treatment” for this unique district.
