Indonesia had initially
invaded East Timor in December 1975, soon after the Revolutionary Front for an Independent East Timor (
Fretilin), had declared the territory's
independence. Indonesia annexed East Timor the following year, and under
President Suharto, its occupation of the territory was often characterised by violence and brutality. Indonesian occupation and annexation of East Timor
was not recognised by United Nations. Up until 1999, Indonesia was faced with constant pressure and criticism from the United Nations and the international community regarding its occupation of East Timor. The
Dili massacre on 12 November 1991 increased international attention on the situation and further pressured Indonesia. More pressure on Indonesia followed when two East Timorese leaders - Bishop
Carlos Ximenes Belo and
José Ramos-Horta - received the Nobel Peace Prize in 1996.
B.J. Habibie succeeded Suharto in March 1998, and sought reform on the East Timor issue with international pressure mounting. Visiting diplomats from various countries such as Austria and the United Kingdom arrived in East Timor and in June 1998 affirmed that the East Timorese people should have the final decision regarding the region's commitment to Indonesia. In July, in the
United States Senate, a resolution backed a United Nations led and supervised referendum for the East Timor to decide their attachment to Indonesia. On July 24, President Habibie decreed a series of withdrawals of Indonesian forces from the region. East Timor youths from July to September 1998 conducted a free speech campaign that demonstrated to the "UN and the Indonesian government their rejection of autonomy and endorsement of an UN-supervised referendum." The Indonesian government was going through a period of reform during this period. It had invested largely in East Timor and Habibie faced pressure to protect Indonesia's interests in the territory, particularly from Indonesia's security branches:
Dephankam (Department of Defence and Security),
Indonesian National Armed Forces (TNI) and
Deplu (Ministry of Foreign Affairs). Hoping to have East Timor accepted by the international community as a legitimate part of Indonesia, on January 27, 1999, Habibie announced that East Timor would be permitted to vote on accepting "autonomy" within Indonesia. If special autonomy in Indonesia was not accepted, then East Timor would be allowed independence. Many international and East Timorese leaders, including the jailed resistance leader
Xanana Gusmão, asked for a five-to-ten year transition period, recognising that a quick all or nothing ballot could prove disastrous. In the preceding months, President Habibie had made various public statements whereby he mentioned that the costs of maintaining monetary subsidies to support the province were not balanced by any measurable benefit to Indonesia. Due to this unfavourable
cost-benefit analysis, the most rational decision would be for the province, which was not part of the original 1945 boundaries of Indonesia, to be given democratic choice on whether they wanted to remain within Indonesia or not. This choice was also in line with Habibie's general democratisation program in the immediate post-
Suharto period. As the follow-up step to Habibie's request, the United Nations organised a meeting between the Indonesian government and the
Portuguese government (as the previous colonial authority over East Timor). On 5 May 1999, these talks resulted in the "Agreement between the Republic of Indonesia and the Portuguese Republic on the Question of East Timor" which spelled out the details of the requested referendum. The referendum was to be held to determine whether East Timor would remain part of Indonesia, as a Special Autonomous Region, or separate from Indonesia. The referendum was organised and monitored by the
United Nations Mission in East Timor (UNAMET) and 450,000 people were registered to vote including 13,000 outside East Timor. The UN Consultation, which had been scheduled for 8 August 1999, was delayed until 30 August due to the deteriorating security circumstances created by Jakarta-backed militia violence. ==Proposed autonomy for East Timor==