Thu, 07 Jul 1994

Unemployment remains Timor's major problem

JAKARTA (JP): Although the province's per capita income has risen dramatically from Rp 40,000 to Rp 450,000 in the 18 years since East Timor's integration into Indonesia, unemployment remains a major problem which could get worse in the future, Governor Abilio Jose Osorio Soares says.

In an exclusive interview with The Jakarta Post on Monday in connection with the commemoration of East Timor's integration into Indonesia, the governor said that while the pace of development had over the years added some 24,000 senior high school graduates to the province's labor force, this accomplishment had at the same time created a need for suitable employment opportunities that have not yet been met.

Soares said he had urged private business as well as the central government in Jakarta to accord due attention to this problem. The governor in this context welcomed reports that Australian businessmen are interested in investing in East Timor. He said he had instructed officials from regents and district chiefs down to village heads to support businessmen wishing to do business in their regions.

Quoting a report from the chairman of the East Timor branch of the Indonesian Chamber of Commerce and Industry following his recent return from a trade expo in Darwin, Soares confirmed that businessmen in Darwin, especially those of East Timorese origin, are interested in investing in East Timor.

They also expressed the hope that the Indonesian government will allow direct flights between Darwin and Dili to better entice Australian investors into putting their money into undertakings in this territory, he added.

East Timor became a part of Indonesia in 1976. At that time the province's estimated population of 600,000 lived in 13 regency towns and 442 villages in 62 districts. According to official figures, East Timor's population now stands at 820,000.

Whereas in 1976 the entire provincial budget was financed by Jakarta, the province now boasts an income of between Rp 4 billion and Rp 5 billion derived from local resources. (yac/17)