lolwut? the international community, australia in particular, was in the process of negotiating with suharto throughout the early 90s, and the consensus is that indonesia was going to cave in to a proposal on east timorese autonomy. it was quiet diplomacy. then bill clinton went to the APEC meeting in 1994 and, in the manner of an american-cum-self-appointed-spokesman-of-the-world, demanded reform. the indonesian imperialists, once bitten twice shy, were not going to have a bar of the demands of the american imperialists and said as much.
and even after the backlash against clinton's statements, the howard government continued to push habibie to grant the east timorese a national referendum, for self-determination, after autonomy had been granted. habibie wouldn't have a bar of it, so downer and howard decided to free the timorese with their bare hands.