JS - the initials the suspect is known by - was detained in Lauva, Riheu village, on Tuesday morning, said Timor-Leste police, as part of a major investigation into the violence.
Inspector Afonso do Santos, Commander of Police Special Unit, said JS had admitted to the murders and shown police the knife he had used in the fatal attacks.
"He said that this is the knife I used to kill the victims and that all the houses that were burned were burned by him,” Santos said.
Santos said JS had also admitted he knew “all the suspects involved in the incident” and that he had been hiding in Ermera for that past four days.
JS is being held at the Caicoli police station in Dili where he waits trial.