To celebrate the 50th anniversary of independence in Papua New Guinea, for the month of September Australian Policy and History is publishing policy briefs written by students studying at Honours, Masters or Doctoral levels who attended a June 2025 intensive workshop on Papua New Guinea and Australia, sponsored by DFAT and run by Deakin’s Centre for Contemporary Histories, at the National Portrait Gallery in Canberra.

 

Attention: Hon. Salio Waipo, Minister for Forests, Papua New Guinea 

Executive Summary:  

PNG’s dependence on raw log exports limits economic gains from forestry. This brief recommends policies to incentivize domestic processing industries, supported by Australian investment, training, and market facilitation. 

The Problem:  

Less than 10% of PNG’s timber exports are processed domestically, losing opportunities for employment and revenue growth (Filer & Sekhran, 1998; O’Brien, 2018). Structural barriers include inadequate infrastructure, lack of technical skills, and limited market access for value-added products. 

Policy Alternatives: 

  1. Maintain Status Quo. 
  1. Promote Domestic Value-Adding Without Bilateral Support. 
  1. Establish PNG–Australia Timber Value-Adding Partnerships (Recommended). 

Policy Recommendations: 

  1. Develop incentives for investment in domestic sawmilling and furniture industries. 
  1. Facilitate bilateral joint ventures with Australian timber processors. 
  1. Implement technical training programs in wood processing and engineered timber products with Australian TAFE and universities. 
  1. Align product standards with Australian and international markets. 

Implementation:  

Set up a value-adding development taskforce under PNG Forest Authority with DFAT and Australian timber industry liaisons. Draft legal and tax incentives for investments, secure DFAT funding for training programs, and pilot sawmilling and furniture clusters in key timber provinces within three years. 

Risks and Mitigation:  

Risks include investment hesitancy due to policy uncertainty and market competition. Mitigation includes clear policies, public-private partnerships, and integration of landowner groups into value chains. 

Stakeholder Impacts: 

  • Landowners and communities: Gain jobs, skills, and higher timber returns. 
  • PNG Government: Increases revenue, GDP growth, and industrial diversification. 
  • Australia: Gains export markets for technology and fosters regional economic stability. 

Conclusion:  

Bilateral strategies to develop PNG’s timber value-adding industry will transform the sector into a major driver of inclusive economic development and sustainable forest management. 

 

Contact: Patrick Materua Dobunaba

Australia Awards Student – Masters of Environmental Management, University of Queensland

Email: pd08unaba@gmail.com

 

Sources Consulted:  

Filer & Sekhran (1998); O’Brien (2018); DFAT (2021).

Patrick Materua Dobunaba

Patrick Materua Dobunaba is an Australia Awards Scholar from Papua New Guinea, of Milne Bay and Central Province heritage. He holds a Bachelor of Forest Science from the Papua New Guinea University of Technology (program completed 2016; graduated 2017). Over 17 years with the PNG Forest Authority, he worked as a forest entomologist and researcher, supporting forest health surveillance and evidence-based management. In 2025 he commenced the Master of Environmental Management at The University of Queensland, with expected graduation in 2026, to deepen expertise in sustainable resource governance and climate-resilient development. Patrick is married with four children and currently resides in Brisbane.