Lae, 9 April 2025 — Papua New Guinea’s oil palm industry stands at a critical juncture and requires urgent reform if it is to regain its economic significance and remain competitive on the global stage, according to Oil Palm Industry Corporation (OPIC) General Secretary Kepson Pupita.
Delivering a keynote address at the National Agriculture Industry Public-Private Sector Partnership Conference in Lae today, Mr Pupita called on the government, the private sector, and landowners to unite behind a new legislative and policy direction aimed at rescuing the stagnating sector.
“We cannot continue to argue or remain complacent. The oil palm industry was once a global success story when development first started in 1968. Sixty years on, we must take stock, learn from the past, and realign with today’s economic realities,” he said.
Mr Pupita painted a sobering picture when comparing PNG’s progress to regional neighbours Indonesia and Malaysia. He said Indonesia has developed 23 million hectares of oil palm plantations and Malaysia 5.6 million hectares, while Papua New Guinea has remained largely stagnant.
“I have been to Indonesia and Malaysia. They are reaping the rewards of long-term investment, policy discipline, and full stakeholder involvement. Why can’t we do the same here?” he said. He described how the agricultural sectors in those countries have generated full employment in rural areas, while in PNG, unemployed youth continue to flood into cities and towns with little opportunity.
He emphasised that land mobilisation remains the biggest challenge for the sector. Despite the national government’s target of developing one million hectares of oil palm, very little new land has been acquired. Even major industry players such as Hargy Oil Palms have not significantly expanded their landholdings since the 1960s.
“How many new hectares have we acquired since 1968? The answer is: not many. Oil palm is not like cocoa or coffee where you can plant a few trees in your backyard. We need large-scale land mobilisation. If we don’t get land, we don’t grow,” he stated.
To address this, OPIC has drafted two pieces of legislation—the Oil Palm Authority Bill, which will focus on regulation, standards and industry oversight, and the Oil Palm Management Bill, aimed at promoting sustainable growth, partnerships and downstream processing.
Mr Pupita made it clear that landowners must not be left behind in this reform process. He stressed that they must be treated as major stakeholders, and not simply as bystanders.
“If landowners are excluded, the industry will collapse. With the current generation more informed than ever through social media, we must ensure landowners are treated as partners—not spectators,” he said.
He rejected suggestions that government regulation would drive away investment, saying OPIC’s intent is to foster inclusive, structured and sustainable development of the industry.
“The private sector is not being pushed out. I worked in the private sector—I want it to grow. But we need legislation and policy clarity to unlock growth,” Mr Pupita said.
He confirmed that consultations on the draft policy and legislation have been conducted nationwide, and the new National Oil Palm Policy is expected to be launched by Prime Minister James Marape in May. Once the policy is officially launched, the proposed legislation will be tabled for further engagement with all stakeholders.
Mr Pupita said the government has set a production target of 1.3 million metric tonnes of crude palm oil by 2027, up from approximately 607,000 metric tonnes in 2021. However, he warned that these targets may be unattainable unless there is a significant increase in new planting and replanting.
“We’ve distributed over 300,000 polybags of seedlings across major projects, but replanting remains stagnant. Many plantations are ageing and yields are falling. Without new development and without replanting, we will not meet our targets,” he said.
Mr Pupita also raised concerns over infrastructure, particularly rural roads. He revealed that across five major oil palm projects, there are over 2,700 kilometres of smallholder access roads—many of which are in a state of disrepair.
“We’ve only managed to rehabilitate about 40 kilometres recently. Without good roads, we can’t transport crops efficiently. This is hurting smallholder participation and affecting productivity,” he explained.
OPIC is working closely with the Climate Change and Development Authority (CCDA) and the Department of Lands to implement sustainable expansion models, including converting palm waste into energy. He said these waste-to-energy initiatives are already widespread in Malaysia and Indonesia and must be replicated in Papua New Guinea.
He also confirmed that OPIC has joined the Council of Palm Oil Producing Countries (CPOPC), an intergovernmental organisation that includes Indonesia, Malaysia and Honduras, among others. As a member, PNG will now have access to global industry intelligence and technical expertise. A delegation of smallholder growers from PNG will travel to Malaysia next month to learn from the country’s modern oil palm systems.
Mr Pupita concluded his speech with a call to action. He said the revitalisation of the oil palm industry is not only an economic necessity, but a nation-building priority.
“The government needs revenue, and young Papua New Guineans need jobs. The oil palm industry can deliver both—but only if we reform. The new policy and legislation are for our good. They’re not to control or restrict—they’re to grow,” he said.
“Let’s not miss this opportunity. The world still demands palm oil. The question is: will PNG rise to meet that demand?”
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