Indonesian president in Papua New Guinea for talks on border, trade

Indonesian President Joko Widodo met his Papua New Guinea counterpart James Marape in Port Moresby on Wednesday, the latest leader to visit the island nation as major powers compete for influence in the strategically important region.

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Widodo’s one-day visit, where a border agreement and trade were the focus of talks, comes after Indian Prime Minister Narendra Modi and US Secretary of State Antony Blinken met a dozen Pacific island leaders in Port Moresby in May.

Papua New Guinea, which counts China as a major trading partner, signed a defense cooperation agreement with the US during the Blinken visit. The deal allows US military access to PNG ports and airports.

A resource-rich but largely undeveloped nation of 9 million, PNG shares a 760-kilometer (472-mile) border with Indonesia. Diplomatic relations have been complicated by the separatist ambitions of Melanesian groups on the Indonesian side of Papua, which was absorbed by Indonesia after a 1969 vote.

A basic border agreement with Indonesia, which had been stalled for 10 years by PNG’s parliament, was ratified in March.

Marape said Widodo’s visit had boosted business opportunities between the two nations.

Outcomes included agreements on customs and combating transnational crime, and a new review of border arrangements to strengthen economic and trade, he told reporters.

Indonesia has agreed to sponsor 2,000 PNG students to attend university in Indonesia, and pledged 55 million kina ($15 million) to upgrade Port Moresby’s hospital, he said.

Areas that need further progress include the ratification of a defense Cooperation Agreement with Indonesia at parliament’s next sitting, and a preferential trade agreement, Marape said in a statement.

“PNG and Indonesia are both economic giants. PNG in the Pacific and Indonesia in Southeast Asia. You can imagine if the two potentials merged, it would surely bring tremendous impact, not just for the people of both nations, but also the region,” Widodo told reporters.

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