International Trade and Investment Minister Richard Maru have urged the Government and stakeholders to immediately secure funding and fast-track the establishment of PNG Diwai Holdings Limited.
He said the forestry reform initiative must move from approval to real implementation through private sector partnerships.
Related news: https://www.pngbusinessnews.com/articles/2026/5/maru-urges-png-diwai-holdings-to-begin-with-one-timber-processing-facility
In his keynote address at the official launch of the company at APEC Haus last Friday, Mr. Maru said the Government had already approved the establishment of PNG Diwai Holdings Limited and endorsed funding through Cabinet.
However, delays in releasing funds had slowed its operational start.
He said it was important to stop blaming agencies such as the PNG Forest Authority, noting that the authority’s role was regulatory and not commercial.
“You are not loggers. You are regulators. That’s a completely new ballgame,” he said.
Mr. Maru stressed that downstream processing in forestry required a new business approach involving structured investment, proper financing and joint ventures with experienced private sector partners.
He said PNG Diwai Holdings Limited should not operate alone but instead become a commercial vehicle that partners with investors to drive forestry value addition.
Mr. Maru said Cabinet had already approved the creation of PNG Diwai Holdings Limited as well as funding allocations, but the company could not function without the actual release of funds.
“I know the Government has approved Diwai Holdings. I was in the Cabinet and approved funding. But sad to say, no funding has come,” he said.
He said the Government must take responsibility for ensuring funding is released and stop shifting blame onto forestry officials and the board.
“We can’t keep blaming the Managing Director and the Forest Minister when we haven’t provided the funding to kickstart this new development,” he said.
He called on the Forestry Minister, the board of PNG Diwai Holdings Limited and stakeholders to urgently identify a private sector partner and prepare a detailed business plan for Cabinet approval.
He said the proposal must clearly outline investment contributions, State equity participation, and financing arrangements needed to establish the first downstream processing facility.
“What we are talking for is let’s get one started,” he said.
Mr. Maru said Government support would be available once a proper proposal and financial model were presented, urging the team to prioritize the first project before expanding nationally.
“We can’t keep talking anymore. We want to see action,” he said.
He said the first facility should be prioritized and located based on feasibility, mentioning areas such as Sandown, Central Province or Morobe Province, but stressing that structure and funding must come first.
Mr. Maru reflected on past forestry operations, saying many landowners had not received meaningful long-term development despite resource extraction.
He said in his own district, forest projects had passed through without proper infrastructure development, leaving communities without roads, schools or health facilities.
He warned that most forests had been depleted without adequate reinvestment, noting it would take decades to regenerate resources.
“All our forests are gone. It will take another 50 years to plant them again,” he said.
Mr. Maru acknowledged that forestry has been a key contributor to Papua New Guinea’s economy, generating between K300 million and K400 million annually over many years since before and after Independence.
He said the sector remained vital for rural communities, particularly in remote areas where government services were limited or unavailable.
“Our landowners are craving forest projects because they have no roads, they have no schools, no housing. Forestry is the only source of help, and the government can’t reach them,” he said.
However, he said the value of forestry had not been fully translated into long-term development outcomes for communities.
He said PNG must learn from past failures and ensure the new forestry model under PNG Diwai Holdings delivers sustainable benefits.
Mr. Maru highlighted broader economic concerns, saying Papua New Guinea’s economy had grown to only around US$32 billion after 50 years of Independence despite vast natural resources.
He compared PNG’s economy with countries such as Australia, Singapore, United Arab Emirates and New Zealand, saying PNG must improve how it manages and processes its resources.
He warned that continued export of raw materials had contributed to weak national economic performance and missed opportunities for industrial growth.
The Minister said Government policy now supports ending reliance on raw log exports and increasing downstream processing to produce finished timber products in Papua New Guinea.
He said incentives should be directed toward investors who build processing facilities rather than those involved in log export operations.
He also stressed the need for incentives, joint ventures and clear agreements between the State and investors to ensure projects succeed.
He said the Government should support partnerships where the State contributes equity and private investors provide capital and expertise.
Mr. Maru said future forestry agreements must clearly define benefits for provinces, districts and landowner communities.
He said agreements should specify infrastructure commitments such as roads, bridges, schools, hospitals and vocational centres, ensuring communities directly benefit from resource development.
He stressed that forestry agreements should not be limited to royalties alone but must include tangible long-term development outcomes.
Mr. Maru also said Papua New Guinea was strengthening international partnerships, including a recent framework agreement signed with China for a comprehensive economic partnership.
He said PNG is now looking beyond traditional partners to expand trade and investment opportunities in sectors such as forestry, mining, fisheries and manufacturing.
Related news: https://www.thepngsun.com/png-diwai-holdings-limited-launched-to-drive-forestry-reforms/
Mr. Maru concluded by describing the launch of PNG Diwai Holdings Limited as the start of a major transformation in the forestry sector.
He said the success of the initiative would depend on securing funding, selecting the first private sector partner, and ensuring the first downstream processing project is established, urging all stakeholders to move quickly from planning to implementation.