Jakarta – Indonesia will seek compensation for its nationals who lost property in East Timor when ministers from both countries meet in Dili for two days of talks beginning Friday, an Indonesian official said.

"But having said that I think we are open to any win-win type of solution to this situation, not wishing to prolong it any further than what is required," Indonesian Foreign Ministry spokesman Marty Natalegawa told reporters.

Foreign Minister Hassan Wirayuda is to leave for the East Timor capital Friday morning to join the second Joint Commission meeting. It will discuss a variety of isues including the border, legal issues, finance, trade, education, culture, transportation and communication.

Indonesia invaded the former Portuguese colony in 1975 and relinquished control in October 1999 after East Timorese voted overwhelmingly for independence. Militias armed and organised by the Indonesian military carried out a campaign of terror ahead of the ballot. The militias and security forces then waged a scorched-earth policy that left much of the territory in ruins, at least 1,000 people dead, and more than 200,000 Timorese temporarily displaced as refugees across the border in Indonesian West Timor. After 31 months of UN stewardship, East Timor became independent in May 2002.

Natalegawa said Indonesia wants "proper compensation" for its citizens who lost property in East Timor. There are good prospects of a "win-win" solution for private companies whose assets could be turned into equities in partnership with East Timorese, he said. Conflicting claims from Portuguese, Indonesian and now East Timorese rule make individual assets more complicated, he said. "So we are keen to ensure that talks in Dili will be able to find a solution to this issue," he told reporters.