Francisco Lu-Olo Guterres is one of the most powerful people within the ruling party FRETILIN. He joined the party in 1974, became commander of the party’s military wing during Timor-Leste’s war for independence and played a key role in the country’s transition towards an independent and democratic state. And unlike many other key political figures, he never gave up his FRETILIN party membership.
Guterres, in Timor-Leste better known by his code name from the liberation struggle, ‘Lu-Olo’, was born on 7 September 1954. He describes himself as ‘the son of a poor family, of humble poor people’. Lu-Olo became member of the left-wing FRETILIN in 1974, the main party of the resistance throughout Indonesian occupation. After the Indonesian invasion of Timor-Leste in December 1975, Guterres joined FALINTIL, the military arm of FRETILIN. As a FALINTIL commander he was responsible for organising the resistance in the Eastern part of Timor-Leste where until today the party is hugely popular. In the resistance movement he worked closely with Xanana Gusmão and Taur Matan Ruak and with those living in exile during the occupation, like Marí Alkatiri and José Ramos-Horta. All were former FRETILIN members, but only Alkatiri and Guterres have remained loyal to the party.
In 2001 Guterres was elected president of FRETILIN at the party’s first congress and has stayed in that role since. From 2001 to 2002 he headed the constituent assembly, the body that was responsible for writing Timor-Leste’s new constitution. Under his leadership, Timor-Leste adopted premier-parliamentarism, a semi-presidential subtype. In the constitution the president is the symbol and guarantor of national independence and the supreme commander of the defence force. The president is endowed with certain unilateral powers, such as the power to veto legislation and appoint officials, and has special powers in the area of defence and foreign affairs. FRETILIN had won the 2001 parliamentary elections and on Independence Day on 20 May 2002 the CA turned into Timor-Leste’s National Parliament with Guterres as president. He remained in this function until 2007, when following the parliamentary elections FRETILIN was forced to the opposition bench.
Since 2007 Guterres ran three times for president but only his last bid was successful. Indeed, in 2007 and 2012 he lost the presidential run-off elections against Ramos-Horta and Ruak, respectively. With the crucial support of Gusmão and his own FRETILIN party, Guterres managed to win an outright majority in the first round of the presidential elections on 20 March 2017. In his victory speech, the president-elect promised to keep peace and unity as his primary goals of his presidency. “I’ll be president for all people in Timor-Leste, even those who didn’t vote for me,” he told a crowd of supporters. “I’ll keep fighting for peace and unity of our nation.” Yet, given that virtually all political parties are represented in a government of national unity, it is not entirely clear who, precisely, Guterres wants to unite.
Perhaps the unity government anticipates that in the near future its policy of ‘buying peace’ will no longer be an option. Ever since the massive inflow of petrol dollars in the mid-2000s, the government has spent millions of dollars in social benefits to appease the so-called veterans who (claim to) have played an active role in the independence struggle. These well-organised trained guerrilla fighters have shown to be capable to create chaos whenever they disagree with government policy. The problem now is that the government is rapidly running out of cash due to dropping oil and gas revenues, so it may no longer have the financial means to buy off the potential troublemakers.
The president-elect has announced to back the current government’s foreign policy direction when it comes to relations with Australia and Indonesia. This means that the current standoff between Timor-Leste and Australia over the exploitation of the Greater Sunrise oil and gas field will continue to deprive the state of the much-needed oil revenues to fill up the rapidly growing budget hole. Furthermore, those who are dissatisfied with the current unity government may find it difficult to cast their vote in the upcoming parliamentary election as opposition is virtually non-existent.
Guterres will be sworn in as the fourth president of post-independent Timor-Leste on 20 May 2017.
 In 1974 FRETILIN was called ASDT (Timorese Social Democratic Association).
 Oil revenues make up 90 per cent of the budget and roughly 80 per cent of the country’s national income is derived from oil. It is estimated that the oil fields with production agreements will be depleted by 2025.