One of the most pressing issues raised by Papua New Guinea’s Minister for Foreign Trade and Investment, Hon. Richard Maru, is the state of the oil palm industry, which he described as being in “a mess.”
MP Maru revealed that the government has commissioned an independent investigation to address regulatory gaps, pricing disparities, laws, and policy, including the industry structure and land acquisition issues that have plagued the sector for decades.
“We must ensure that our people benefit from their land. Right now, they get very little, while foreigners who acquire their land make huge profits. It’s time to clean up this mess,” he stated.
The Oil Palm Investigation Team is the first of its kind and has already arrived in Port Moresby, Minister Maru told the media on Jan. 31 in Port Moresby.
He reassured the public that the investigation team consists of independent experts, including an economist, an accountant, and a legal advisor, to provide unbiased recommendations.
Given the timeframe of the investigation of about three weeks, the team’s findings would be submitted to the National Executive Council (NEC) and debated in Parliament to establish a new regulatory framework, the MP said.
Minister Maru expressed his frustration over PNG’s reliance on foreign loans, emphasizing that a strong oil palm industry could transform the nation’s economy.
Oil palm is the country’s leading agricultural export, generating over K2.8 billion in exports in 2022.
“If we develop the oil palm industry properly, we could increase our revenue from K2.5 billion to K25 billion or more. We need to support our people to get fair prices for their produce, which will encourage them to expand cultivation,” the minister said.
“The oil palm industry has been self-regulating for the last 50 years because the government does not have a policy or law to regulate it,” Maru explained.
He highlighted extreme pricing discrepancies, noting that farmers in different oil palm provinces such as in Kimbe, West New Britain Province and in Rabaul, East New Britain receive different purchasing amounts.
“This investigation will bring to light the differences in lease-leaseback arrangements, land dealings, and price formulas,” he said.
“Our interest as a government is that there should be one price for everybody. When the world market price is high, our farmers must benefit,” he said, noting that implementing a national pricing formula ensures fair compensation for landowners and farmers.
While he admitted this should have been done earlier, MP Maru said his Ministry are taking up the responsibility to ensure the oil palm industry in PNG gets the attention it deserves to grow and boost the economy.
“It’s never too late. It's better to do it now. I've taken the initiative to do it. I thank the government, Prime Minister Hon. James Marape and the Cabinet for agreeing with me that we need to sort out this industry and set it on a growth path,” he said.
“The oil palm industry is the most important agricultural sector in PNG, yet it lacks a proper regulatory framework. We need policies that protect our landowners and ensure that foreign investors do not exploit our resources while paying our people very little,” he added.
MP Maru has declared 2025 as a pivotal year for his ministry, setting ambitious targets to drive economic growth, employment, and industry reform, particularly in the oil palm industry, vowing to “deliver as best as they can in the course of this year.”
He underscored the need for tangible outcomes and directed ministry heads to meet specific targets that have not been achieved since PNG’s independence.
Minister Maru cited Indonesia’s oil palm sector, which employs over four million people, as a model for PNG to follow.
“One oil palm mill with 10,000 acres can create 5,000 jobs. The PNG LNG project only employs 3,500 people. We need to focus on industries that will create real employment for our young people,” he stressed.
He made a strong call to action, saying that PNG has the potential to achieve economic independence.
“I want to see the day when we no longer borrow money. I want to see the day when we have enough revenue to pay for our children’s education, maintain our universities, and develop our country,” the MP said.
Minister Maru affirmed that the Marape government is committed to taking the necessary steps to reform the oil palm industry and drive economic growth, as his ministry is working with other departments, government regulators, and the Minister for Oil Palm Hon. Francis Galia Maneke in “ensuring a smooth flow of the investigation and implementation is done accordingly.”
“The success of this industry will determine the future of our country. We are building an industry that will provide jobs, grow our economy, and secure our financial independence,” he said.
