you're in australia?
timor first: this is super easy to do on arrival, provided you have $30US (double check this figure). this gets you 30 days, which i believe is easy to extend. there is one trick to be aware of: you will be given an arrival card on the plane, which will ask what your departure date is. but 30 days from your arrival date. there is no penalty for leaving early, and if you put less you will only be issued a visa for that long (at the same cost)
are you in touch with the indonesian consulate in australia? we found them imposible to deal with. they wouldn't answer the phone or respond to email, seemingly made up strange requirements (as appears to be happening to you, as you do not need the letter), and took weeks and weeks to issue our visas. by contrast, dili takes 3 working days and they are used to doing it
i suggest you speak to rita at east timor backpackers in dili. alongside having the cheapest beds in town (it's best to book ahead), she can tell you what is required and where to go (at no charge). you'll need 2 passport photos with red backgrounds, which you can grab in dili, but it may be simpler to grab these in ausieland
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