Initially circle round East Timor encircling island (5)
I believe the answer is:
crete
'island' is the definition.
(Crete is an example)
'initially circle round east timor encircling' is the wordplay.
'initially' says to take the initial letters.
The first letters of 'circle round east timor encircling' is 'CRETE'.
(Other definitions for crete that I've seen before include "Large Greek island" , "Mediterranean island with Minoan remains" , "European location" , "Greek territory" , "Erect (anag) - Mediterranean island" .)