Does this mean that "East Timor" means "East east?"
No East Timor would be Timur Timor
no. east timor is timor timur.
Doesn't laut mean ocean?
no. "laut" means "sea". "ocean" is "samudra".
Laut can mean sea, ocean or when used in a compound northeast (Timur Laut) or northwest (Barat Laut)