Land Reform Key to Unlocking Timor-Leste’s Economic Future, New World Bank Report Says

DILI, Timor-Leste - September 30, 2025 - Timor-Leste's economy grew by 4.1 percent in 2024, its fastest pace in years. While growth has continued in 2025, sustaining this momentum and securing long-term prosperity will require reforms to strengthen land governance, reduce reliance on withdrawals from the Petroleum Fund, broaden domestic revenues, and improve the efficiency of public spending.

The September 2025 edition of the World Bank's Timor-Leste Economic Report - "Land of Opportunities: How Land Administration Can Power Timor-Leste's Economic Transformation" - examines how land governance influences Timor-Leste's development.

The analysis finds that fragmented land administration creates systematic barriers to inclusive growth, even during periods of economic expansion. There has been significant progress in establishing the legal foundations for a modern system of land administration, but implementation challenges continue to constrain development. International lessons from Rwanda and Indonesia show how systematic land reform can raise productivity and revenues.

"Land is Timor-Leste's most valuable asset," said David Freedman, World Bank Group Resident Representative for Timor-Leste. "An efficient system for land titling, secure and fair land rights can stimulate private investment, create more jobs, drive growth and help reduce poverty."

To encourage investment and unleash the country's productivity the report proposes a "7 Ps" roadmap-Policy, Protection, Planning, Past Data, People, Processes, and Platform. Implementation of this framework would unlock growth by strengthening land rights and modernizing land administration.

The Timor-Leste Economic Report (TLER) is the World Bank's flagship biannual publication on the country's economy. It provides analysis of recent trends and policy options to support Timor-Leste's transition toward resilience, diversification, and inclusive growth.