East Timor (ˈtiːmɔr), also known as Timor-Leste (tiˈmɔr_ˈlɛʃteɪ; tiˈmoɾ ˈlɛʃtɨ), officially the Democratic Republic of Timor-Leste, is a country in Southeast Asia. It comprises the eastern half of the island of Timor, of which the western half is administered by Indonesia, the exclave of Oecusse on the island's north-western half, and the minor islands of Atauro and Jaco. Australia is the country's southern neighbour, separated by the Timor Sea. The country's size is . Dili is its capital and largest city.
East Timor was settled by waves of Austronesian and Papuan peoples, which are reflected in the country's diverse mix of cultures and languages reflecting its links to Southeast Asia and Melanesia despite its small area. East Timor came under Portuguese influence in the sixteenth century, remaining a Portuguese colony until 1975. Internal conflict preceded a unilateral declaration of independence and an Indonesian invasion and annexation. Resistance continued throughout Indonesian rule, and, in 1999, a United Nations–sponsored act of self-determination led to Indonesia relinquishing control of the territory. On 20 May 2002, as Timor-Leste, it became the first new sovereign state of the 21st century. That same year, relations with Indonesia were established and normalized, with Indonesia also supporting East Timor's accession into ASEAN.
The national government runs on a semi-presidential system, with the popularly elected president sharing power with a prime minister appointed by the National Parliament. Power is centralised under the national government, although many local leaders have informal influence. The country maintains a policy of international cooperation, and is a member of the Community of Portuguese Language Countries, an observer of the Pacific Islands Forum, and an applicant for ASEAN membership. The country remains relatively poor, with an economy that relies heavily on natural resources, especially oil, and foreign aid. Aside from oil, coffee is one of East Timor's largest exports, and makes up a substantial percentage of its agricultural output.