Agriculture

The main part of the economic activity in the province is subsistence agriculture. Important local crops include corn and some smallholder plantation crops such as coffee. In some places such as Sumba, the lontar palm (Borassus flabellifer) dominates local agricultural activities and is a very important part of the local economy. In these areas, the lontar palm provides timber and thatching as well as food in the form of fruits, and palm sugar which is obtained by tapping the fruit stems.

The sugary sap can be used to make alcoholic drinks. In other parts of the province such as West Manggarai, the sugar palm (Arenga pinnata) has a useful role in the local economy. The degree of mechanization in agriculture is low. Large animals (buffaloes, horses) are widely used throughout the province.

Natural resources

A significant part of the economic activity in the province involves the development of natural resources, including forestry and numerous local mining ventures. Some of the activity is controversial, however, because regulatory controls over the use of natural resources are not always effective. There have been disputes in some areas over the use of land. Manganese mining, for example, in the central part of the island of Timor has been controversial. Nearby, in the Mount Mutis area to the east of Kupang, amongst some local groups there is a concern at the way local resources are being developed by mining companies.

There is also significant activity in the informal mining sector. Across the province, villagers sometimes exploit localized opportunities to undertake unregulated mining or mineral-based projects. In West Timor, for example, in the South Central Timor Regency, villagers living near the south coast in the Kolbano area south of the town of Soe sometimes collect colored stones which, in turn, are sold to companies that export the stones to countries such as Australia, China, Malaysia, Singapore, and elsewhere.

The cultivation of seaweed is an important activity in some parts of the province. In the Alor Islands, for example, village-based informal cultivation of seaweed helps boost local incomes. Much of the seaweed is exported in unprocessed form, including to countries such as Japan in north Asia. One view is that more needs to be done to encourage further domestic processing of the seaweed to add value before export; however, the local skills and facilities for further processing are not well-developed and it is not clear that a program to encourage further processing would be successful.