Cost of living in Timor-Leste

The island of Timor was actively involved in Southeast Asian trading networks for centuries, and by the 14th century, it exported sandalwood, slaves, honey, and wax. The sandalwood trade attracted the Portuguese, who arrived in the early 16th century; by mid-century, they had colonized the island, which was previously ruled by local chieftains. In 1859, Portugal ceded the western portion of the island to the Dutch. Imperial Japan occupied Portuguese Timor from 1942 to 1945, but Portugal resumed colonial authority after the Japanese defeat in World War II. The eastern part of Timor declared itself independent from Portugal on 28 November 1975, but Indonesian forces invaded and occupied the area nine days later. It was incorporated into Indonesia in 1976 as the province of Timor Timur (East Timor or Timor Leste). Indonesia conducted an unsuccessful pacification campaign in the province over the next two decades, during which as many as 250,000 people died. In a UN-supervised referendum in 1999, an overwhelming majority of the people of Timor-Leste voted for independence from Indonesia. However, anti-independence Timorese militias -- organized and supported by the Indonesian military -- began a large-scale, scorched-earth campaign of retribution, killing approximately 1,400 Timorese and displacing nearly 500,000. Most of the country's infrastructure was destroyed, including homes, irrigation systems, water supply systems, schools, and most of the electrical grid. Australian-led peacekeeping troops eventually deployed to the country and ended the violence. In 2002, Timor-Leste was internationally recognized as an independent state.

Background from the CIA World Factbook (public domain), archived 2026-06-03.