Posted By Staff Reporter

China, Indonesia Trade Talks Central to PNG’s Investment Strategy

10/12/2024

Papua New Guinea is actively negotiating free trade agreements with China and Indonesia to enhance economic opportunities and expand trade, according to International Trade and Investment Minister Richard Maru. He stressed the importance of securing free access to these vital markets as part of the country’s broader investment strategy.

Maru highlighted PNG’s ongoing challenges, including high unemployment, law and order issues, unreliable and expensive electricity, foreign exchange shortages, and limited State land for investments. Despite these hurdles, he said PNG remains an attractive destination for investors, citing the nation’s rich natural resources, fertile land, green energy potential, and proximity to Indonesia.

He emphasized the need for PNG to reduce its dependence on imports by focusing on local production and downstream processing of raw materials. Maru called for investments in high-potential sectors such as agriculture, forestry, fisheries, manufacturing, tourism, and hospitality while promoting the development of Special Economic Zones to accelerate economic growth.

The government, he added, aims to create one million new jobs by 2027. Maru also outlined plans to significantly reduce State borrowing, with a goal to lower debt levels from K2.9 billion in the 2025 budget to between K1 billion and K2 billion by 2026. By 2027, the government intends to achieve a budget surplus and begin repaying its K62 billion debt.

Maru noted that Australian companies continue to lead as PNG’s largest investment partners, with investments totaling K4 billion this year. He encouraged both local and foreign investors to capitalize on PNG’s untapped potential, particularly in sectors that can reduce import dependency and drive sustainable economic growth.

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