Jakarta. Indonesia and Papua New Guinea (PNG) signed a series of deals aimed at facilitating the cross-border movement of people and goods on Monday. 

The signing took place when President Joko “Jokowi” Widodo hosted Papua New Guinean Prime Minister James Marape on a state visit to the Bogor Palace on Monday. The first memorandum of understanding (MoU) revolved around cross-border movements of commercial bus passengers between PNG’s Vanimo and the Papuan capital of Jayapura. Both countries also inked a separate MoU that would regulate the cross-border goods transfer via motor vehicles between the two cities.

Jokowi has high hopes that the freshly signed MoUs could supercharge bilateral trade numbers. As goods transfer is now made easier, Jokowi wants the two countries to resume their talks for a preferential trade agreement, which will boost market access for certain goods.

"The cross-border movement MoUs are pivotal to improving the economy and the people-to-people relations in the borders. I reiterated the need to resume our discussions for a preferential trade agreement to improve our bilateral trade,” Jokowi told a joint presser, shortly after the meeting.

Marape did not specifically mention the preferential trade agreement. However, he admitted that bilateral relations had now transcended border issues, and is now dealing with commerce, among others. Marape also talked of Indonesia’s upcoming shift in presidency as Jokowi’s successor Prabowo Subianto is scheduled to rise to power this October. Marape said he planned on meeting Prabowo in person during his visit.

“We are absolutely certain that the work that you [Mr. Jokowi] have started with me will be carried on not just by our ministers and respective departments, but also by the [incoming] president … We will continue building the same spirit for a stronger relationship, and maintaining the aspect of the relationship that [puts] more [focus] into economy, commerce, and trade,” Marape said.

Indonesia reported that its trade with PNG had dropped from $307.1 million in 2022 to $247.6 million the following year. The trade figures were mainly Indonesian exports to the PNG, which totaled $196.9 million in 2023. However, bilateral trade already hit $152.8 million in the first five months of 2024, up by 55.8 percent from $98.1 million recorded in the same period last year.

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