With Habibie's consent, the UN scheduled a referendum in the province in August 1999. Habibie's pledge was welcomed by East Timorese nationalists, but it also raised many serious doubts. Within East Timor, a substantial minority opposes independence. In the run up to the referendum, armed groups representing both sides of the independence question staged attacks. Indonesia's military frequently turned its weapons against the independence movement.
Finances present another problem.
Funding from Indonesia's central government has accounted for roughly half of East Timor's backward economy. Indonesian officials have also been concerned about the repercussions of an independent East Timor. They fear that other parts of their island nation may seek to follow East Timor's example. At the same time, many are uneasy that East Timor has once again become an international issue. There were hopes in the first days after the vote that the outcome would be accepted and calm would prevail.