In the place where thousands of Timorese people have sought refuge during Indonesian occupation, and where in 2002 the government formally proclaimed its independence, Lu Olo encouraged Timorese people to pay tribute to those that brought the country its freedom, but to join him in the hard work ahead.

A former guerrilla fighter, Lu-Olo is the country’s first to come from the nationalist leftwing political party, Fretilin, born from the decades-long resistance movement.

In the 12-hour inauguration ceremony on the eve of the 15-year anniversary of marking of country’s independence, the new President claimed a mandate to “preside over the destiny of the nation”.

“We should be proud of so much that has been done during the last 15 years, but we should be aware that there is still much to be done,” he told the crowd.

The new President said his administration would push for greater exposure of the country on the world stage, defending its hard won sovereignty but fostering relationships with new and key allies.

He also singled out bringing an end to the long-running and often bitter maritime border dispute with its neighbor Australia to access the estimated $40billion oil and gas reserves in the Timor Sea.

“I will follow with particular attention and interest the process to establish demarcation of our permanent maritime and land borders with our neighboring countries, Australia and Indonesia,” he said, referencing the talks that are before The Hague.

Domestically, he pledged sustainable development, political stability, national unity, and action on violence against women and children, and poverty.

In the long ceremony, Lú-Olo and his predecessor, Taur Matan Ruak, arrived about midnight by motorcade.

Many in the crowd said they would wait all night to hear what the new President would say.

“I remember this independence, and now I am going to see our new president so we can welcome him,” Nona Fernandez, 19, told the Guardian. “And so he can see how we are going to support our leaders … For me, the president is very important in my life.”

Andre Rangel Gomes, a public servant, told the Guardian that Lú-Olo’s most important task was to maintain stability for Timor-Leste.

Poverty in Timor-Leste is decreasing, but remains a way of life for about one-third of the population. In 15 years, the country has come far but as Lú-Olo notes, it still has far to go.

Parliamentary elections will be held in coming months and Ruak is expected to run with his newly formed Peoples Liberation party (PLP).

Should the PLP win, Ruak will follow in the footsteps of several predecessors who have held the presidency and prime minister ship, including Xanana Gusmao and Jose Ramos Horta.

He will hold more power as prime minister, steering the country through economically dangerous times.

The country’s leaders acknowledge its precarious over-dependence on oil and gas revenues - these contribute between 90% and 95% of the annual US$1.3bn-1.5bn ($1.75bn-$2bn) budget but current reserves are due to run out in the next few years.

The vice-finance minister, Helder Lopes, told the Guardian before the inauguration that warnings the country could become a failed state were “partially correct” but the government was well aware of what it needed to do.

More than US$16bn has been funnelled into a sovereign wealth fund, which is partially invested but also heavily utilised in public spending. Timorese ministers and diplomats are unapologetic about the government’s front loaded expenditure on infrastructure, arguing that without good roads, reliable electricity, and fast internet, investors will stay away.

Lopes noted the low 10% corporate tax rate and generous investor incentives as he described his government’s hope that Timor-Leste would become a manufacturing and finance hub in the region. He said Timor-Leste was geographically well placed and politically stable, making it an attractive option for foreign investors if the infrastructure was up to scratch.

“The next election is key. If we don’t have any problems, I believe we will give a positive signal to private sector investors.”

The ceremony included, the bestowing of the Great Necklace of the Order of Timor-Leste, a 21-gun salute, the raising of the flag, a lap of honour in a military jeep, and more than one rendition of the anthem, followed