1. The first meeting of the Joint Ministerial Commission for Bilateral Cooperation
                 between the Government of the Republic of Indonesia and the Government of the
                 Democratic Republic of Timor-Leste was held in Jakarta on 7-8 October 2002. 
                 The delegation of the Government of Indonesia was led by H.E. Dr. N. Hassan
                 Wirajuda, Minister for Foreign Affairs, and the delegation of the Government of
                 Timor-Leste was led by Senior Minister for Foreign Affairs and Cooperation, Dr.
                 Jose Ramos-Horta.  The list of the delegations appears as Annex 1. 

                 2. The Timor-Leste delegation expressed its deep gratitude for the historic visit of
                 H.E. Megawati Sukarnoputri, the President of the Republic of Indonesia, to their
                 country, on the day of their independence, and for the magnificent welcome
                 accorded to their President, H.E. Xanana Gusmao, during his first state visit to
                 Indonesia. In addition, both delegations expressed their positive view with regard
                 to the convening of trilateral meeting between the Indonesia, Timor-Leste  and
                 Australia as well as the first Ministerial Meeting of the Southwest Pacific Dialogue
                 as the two Meetings have already laid foundation for cooperative framework to
                 strengthen the bilateral cooperation of the two countries. 

                 3. Recalling the steps already taken since the agreement in February this year in
                 Bali for the establishment of full diplomatic relations between the two countries, the
                 Government of Timor-Leste expressed its appreciation for the agreement for the
                 appointment of their first Ambassador to Indonesia, meanwhile the Government of
                 Indonesia is in the process to appoint its Ambassador to Timor Leste soon. 

                 4. The Parties recalled the Memorandum of Understanding signed between them
                 on 2 July 2002 agreeing to establish the Joint Commission for Bilateral
                 Cooperation in order to facilitate consultation and cooperation between the two
                 countries in all areas as a reflection of their common interest in strengthening
                 existing friendly relations and mutual cooperation on a lasting basis. 

                 5. The Meeting discussed ways to address the residual problems as well as to
                 boost bilateral relations between the two countries in the form of finding new areas
                 of cooperation on the basis of reconciliation, mutual respect and a forward-looking
                 stance.  The Meeting took note of resolving the residual issues to the future
                 relations between the two countries.  Therefore, the Meeting agreed to establish
                 five working groups, namely on borders issues; trade and finance; legal matters;
                 social, educational and cultural affairs; and transport and telecommunication. 

                 6. Taking note of the complexity of the border issues, both sides agreed to declare
                 the continuation of the previous Joint Border Committee between the Republic of
                 Indonesia and UNTAET as a Joint Border Committee between the Republic of
                 Indonesia and the Democratic Republic of Timor-Leste.  The two sides agreed
                 that the first meeting of the Committee would be held on 18-19 November 2002 in
                 Indonesia. The Joint Border Committee will report the result of the first meeting to
                 the Working Group on Border Issues before the Second Joint Ministerial Meeting
                 is convened. 

                 7. Recalling the Joint Statement of the High Level Bilateral Meeting held in
                 Denpasar on 25 February 2002, the Parties agreed to invite the Joint Border
                 Committee to make every effort to finalize agreement by 30 June 2003 on a line
                 that constitutes the border in accordance with the 1904-Treaty between Portugal
                 and The Netherlands and the1914-Arbitral Decision and other relevant legal
                 instruments, and in accordance with which the land border can be demarcated
                 unequivocally. 

                 8. The Meeting agreed to discuss maritime boundary delimitation issues in a
                 separate forum and will commence informal dialogue at the earliest opportunity.. 

                 9. Recalling the Joint Statement of the High Level Bilateral Meeting held in
                 Denpasar on 25 February 2002, in which the Parties undertook to expedite the
                 Arrangement on Traditional Border Crossings and Regulated Markets, and
                 recognizing the close social and economic ties between villages in the border areas
                 and the importance of supporting and preserving these ties, the Parties agreed to
                 sign the Arrangement on Traditional Border Crossings and Regulated Markets at
                 the earliest opportunity. 

                 10. Pending implementation of the Arrangement on Traditional Border Crossings
                 and Regulated Markets, the Parties provisionally agreed to continue to allow
                 persons residing in Oecussi to cross into neighboring areas of West Timor for
                 traditional, social and family visits as well as economic contacts, and small-scale
                 and customary trade, on presentation of permission signed by the District
                 Administrator, with reciprocal arrangements for Indonesian citizens residing in the
                 border areas in West Timor, at the five locations recognized as junction points on
                 the Tactical Coordinating Line. 

                 11. The Parties agreed to maintain the Cooperation Arrangement in Postal
                 Services signed on 25 February 2002, as provided for under Article VIII(2) of
                 that Arrangement. 

                 12. The Parties agreed to finalize the implementation of the Arrangement between
                 the Republic of Indonesia and UNTAET on the Implementation of Payments of
                 Pensions during the Transitional Period to Eligible Former Civil Servants and
                 Members of POLRI and TNI signed on 10 July 2001. 

                 13. The Meeting agreed to seek comprehensive solutions in the interests of further
                 strengthening cooperation between close neighbors on residual legal matters such
                 as assets (private individual, corporate and government) and the question of
                 nationality.  In addition, both Parties agreed in principle to find innovative
                 settlement on corporate assets through conversion of those assets for Indonesian
                 investment including joint venture.  Both Parties agreed to hold technical meeting to
                 be conducted within 6 months before the second Joint Commission Meeting. 

                 14. The Meeting took note of the importance of the two countries working
                 together to make every effort to finalize an agreement on cooperation in legal and
                 judicial matters. 

                 15. On the issue of the Seroja Patriot Cemetery, the Government of Timor Leste
                 agreed to preserve the existence of the cemetery at the expense of the Government
                 of Indonesia and give the related families access to the cemetery. 

                 16. On the issue of separated children, both sides agreed to assist in the
                 acceleration of the process of rejoining separated children with their parents. 

                 17. Both sides were of the view that they would extend full support for measures
                 to improve economic and trade relations between the two countries.  In this
                 regard, both sides agreed that the necessary steps be taken to promote an
                 umbrella agreement on these matters and to be concluded before the convening of
                 the second Joint Commission. The Indonesian side agreed to facilitate technical
                 assistance on banking services to Timor-Leste.  The Indonesian side further agreed
                 to supply the medical needs of Timor-Leste and considered investing in the medical
                 sector in Timor Leste. 

                 18. Both Parties agreed to develop cooperation in fields of education, culture and
                 tourism, archives and environment. 

                 19. The Meeting concurred to draw up a mechanism regulating transport and
                 communications, especially with regard to the Oecussi enclave, and for safety
                 reasons, the mechanism should be in line with Indonesian regulations.  In regard to
                 the Oecussi enclave, both sides agreed to extend the Provisional Technical
                 Arrangement signed on February 25, 2002 between UNTAET and the
                 Government of Indonesia on Facilitating the Movement of People and Personal
                 Effects between the Enclave of Oecussi and Other Parts of East Timor with the
                 change of the route from Motaain-Napan-Motaain to Motaain-Wini-Motaain,
                 pending the conclusion of a new Arrangement between the Republic of Indonesia
                 and the Democratic Republic of Timor-Leste. The New Arrangement should be
                 concluded at the earliest opportunity. 

                 20. The Joint Ministerial Commission also decided that further measures be
                 initiated to facilitate the movement of persons and goods between the enclave of
                 Oecussi and the remainder of Timor-Leste.  The meeting agreed to review the
                 bilateral agreement reached by the Indonesian Government and UNTAET in
                 relation to cooperation on transport and telecommunications. 

                 21. The Timor Leste delegation welcomed the progress made so far in repatriating
                 the East Timorese refugees and The Parties agreed to encourage the return of East
                 Timorese refugees currently residing in West Timor by December 2002, and to
                 resettle those refugees who opts to remain in Indonesia in places allocated by
                 Government of Indonesia. 

                 22. The Timor-Leste delegation expressed its deep appreciation to the Indonesian
                 delegation for the warm hospitality extended to it.  The Senior Minister of Foreign
                 Affairs and Cooperation of Timor-Leste extended an invitation to the Foreign
                 Minister of the Republic of Indonesia to visit Timor-Leste for the second meeting
                 of the Joint Commission.  The Parties agreed that the Joint Commission should
                 hold its second meeting next year in Dili. 
 

                 Done in Jakarta on 8 October 2002. 

                 FOR THE GOVERNMENT OF              FOR THE GOVERNMENT OF THE 
                 THE REPUBLIC OF INDONESIA         DEMOCRATIC REPUBLIC OF 
                                                                         TIMOR LESTE 
 
 

                 Dr N. Hassan Wirajuda                     Dr Jose Ramos-Horta 
                 Minister of  Foreign Affairs                Senior Minister for Foreign 
                                                                    Affairs and Cooperation