PNG-Indonesia business council to be launched, signaling new era in bilateral trade and investment

Minister for International Trade and Investment, Richard Maru, has announced the upcoming launch of the Papua New Guinea–Indonesia Business Council, marking a significant shift in the bilateral relationship between the two neighboring nations.

The official launch will be officiated by Prime Minister James Marape, on Wednesday, May 7, at the State Function Room, National Parliament.

Minister Maru emphasized the need to transition from a security-focused dialogue with Indonesia to a more structured and strategic trade and investment relationship.

“We are so close, yet so far away in terms of trade and investment. For the past 49 years, our engagements have largely revolved around border and security talks. It is time for PNG to develop a deep and robust economic relationship with Indonesia,” said Maru.

"We are so close, yet so far away in terms of trade and investment. For the last 49 years, our focus has been on border and security talks annually. It is time PNG develops a strong, deep, and robust relationship with Indonesia in realizing the potential of both countries in trade and investment,” Maru said.

The newly established PNG–Indonesia Business Council will act as a bridge between the private sectors of both nations, facilitating dialogue, partnerships, and investment opportunities. Its primary role will be to promote foreign direct investment [FDI] from Indonesia into PNG and expand commercial ties.

Minister Maru highlighted Indonesia's global economic stature, describing it as the world’s fourth most populous country, the largest economy in Southeast Asia, and the seventh largest in purchasing power parity terms.

"Indonesia has ranked among the world’s third largest coal and nickel producers. Downstream processing has been relatively successful- thousands of jobs have been created, higher-value skills have been transferred, and advanced technological and economic processes have been brought to Indonesia,” Maru said.

Despite Indonesia’s regional prominence and proximity, Minister Maru noted that PNG has not attracted major Indonesian investment, nor leveraged Indonesia’s expertise in sectors such as mining, agriculture, fisheries, forestry, and processing industries.

“PNG has immense potential with our abundant natural resources. There is no better partner to learn from and collaborate with than Indonesia, which has mastered the art of downstream processing and industrial transformation,” Minister Maru added.

The launch of the PNG–Indonesia Business Council is expected to pave the way for greater commercial cooperation, joint ventures, and technology transfer, especially in key sectors critical to PNG’s economic diversification.