The Catholic Church is demanding that an international tribunal investigate human rights abuses during East Timor's bloody breakaway from Indonesia six years ago.
Instead the two governments have announced the makeup of a largely toothless joint truth commission.
More than 1,000 people were killed in the 1999 violence. Hundreds of thousands of Timorese fled their homes in terror when pro-Jakarta militiamen, backed by the Indonesian military, went on a destructive rampage just days after the population voted for independence in a UN ballot. The mayhem ended only after an Australian-led multinational force arrived and Indonesian troops left.
Since then Indonesia has prosecuted a number of Indonesians accused of leading the violence, but all 18 military and civilian officers charged with human rights abuses have been acquitted.
Recently a UN group called for an international tribunal to be set up to prosecute offenders.
East Timor's two influential Catholic bishops said justice would be best served through such a tribunal. "The Catholic Church requests the continued intervention of the United Nations to achieve justice for the people of East Timor," Bishops Basilio do Nascimento and Alberto Ricardo da Silva said in a statement.
"We hope that the voice of the East Timorese people, who have suffered from impunity, will be heard." But East Timor's foreign minister repeated his opposition to an international tribunal.
"We do not believe the establishment of an international tribunal is the only way to find truth or justice," Jose Ramos Horta said.
In Jakarta, Indonesian foreign ministry spokesman Yuri Thamrin told a news conference that 10 panellists – five from East Timor and five from Indonesia – have been selected.
The commission has been tasked with establishing a "conclusive truth of events" to promote reconciliation and friendship and to ensure that such tragic events will not be repeated.
"The members of the commission have free access to all documents related to the human rights abuses that can be used to reveal the truth, including on the reasons behind the abuses," Thamrin said.
The commission is modelled on South Africa's Truth and Reconciliation Commission, but will have few powers.
Thamrin said the commission would issue recommendations to heal "past wounds" but would not seek to prosecute human rights offenders.
The commission has a one-year mandate that can be extended for another year.
It was established based on an agreement between Indonesian President Susilo Bambang Yudhoyono and East Timorese President Xanana Gusmao last December.
Thamrin said the commission, which is based in the Bali provincial capital Denpasar, will begin work as soon as possible.
Preliminary consultations will take place in Denpasar on Thursday and Friday.
Indonesian has picked Achmad Ali, a legal expert; Wisber Loeis, former director-general of international economic relationship at the Ministry of Foreign Affairs; Benjamin Mangkudilaga, a former Supreme Court justice; Petrus Turang, a West Timor bishop; and Agus Widjojo, a military expert.
The East Timor members are Jacinto Alves, Diorinicio Babo, Aniceto Guterres, Felicidade Guterres and Cirilio Varadales.