On a quiet stretch of land where Indonesia meets Papua New Guinea (PNG), the Skouw–Wutung border has long been more than a checkpoint. It is a place where cultures mingle, where families divided by geography meet, and where small traders cross to sell their goods. But this October, the same border will take on a new identity—no longer just a frontier, but a stage for international cooperation.
The Indonesia–PNG Border Trade Fair 2025 is set to open in Skouw, Jayapura, transforming the border into a bustling hub of business, diplomacy, and cultural exchange. For Papua, this is more than an event; it is an opportunity to prove that the region can be a gateway to the Pacific economy, linking Indonesia not just with its neighbour PNG, but with a wider network of Pacific nations.
A Strategic Event for a Strategic Location
At a press briefing earlier this month, Suzana Wanggai, Acting Regional Secretary of Papua, emphasized the significance of the event. She described the Trade Fair as a strategic initiative that would not only facilitate commerce but also build long-term partnerships between Indonesia and Papua New Guinea.
“This fair is not just about selling goods. It is about creating opportunities, strengthening friendships, and positioning Papua as a gateway to the Pacific market,” Wanggai explained, pointing to the long-term vision of turning the Skouw border into a regional economic corridor.
Her statement reflects a broader ambition: to leverage Papua’s unique geographic position—bordering PNG and located at the western edge of the Pacific—to expand Indonesia’s trade footprint in the region.
Building on History: Skouw’s Role in Border Trade
The Skouw Integrated Border Post, or PLBN Skouw, was inaugurated in 2017 with the vision of transforming what was once a remote checkpoint into a modern center of cross-border activity. Since then, Skouw has grown into a lifeline for businesses in both Indonesia and Papua New Guinea.
Every Tuesday, thousands of PNG citizens make their way across the border to shop in Skouw’s market. They buy Indonesian products ranging from rice, cooking oil, and instant noodles to clothing, construction materials, and household goods. Prices are often cheaper and product quality higher than what they can find at home, making Skouw a vital economic destination.
But until recently, this trade was informal, largely limited to consumer goods. The Border Trade Fair aims to formalize and expand this activity—introducing structured business deals, investment discussions, and even international partnerships.
The Promise for Local Entrepreneurs
For small businesses in Papua, the Border Trade Fair represents a golden opportunity. Entrepreneurs who once only sold within Jayapura or to local markets will now have direct access to PNG buyers, distributors, and possibly even Pacific investors.
Take, for example, local entrepreneur George Waromi, who exports construction materials like sand, asphalt, and pebbles to PNG. Through Skouw, Waromi found that Indonesian customs officers were not only efficient but also eager to guide him through export procedures. “We never imagined exporting was possible for small businesses like ours. But with Skouw, it has become reality,” he said in an earlier interview.
Stories like Waromi’s illustrate how Skouw can democratize international trade, allowing MSMEs (Micro, Small, and Medium Enterprises)—the backbone of Papua’s economy—to enter the global marketplace.
An Economic Gateway to the Pacific
Indonesia has long recognized that Papua’s location is a strategic advantage. By strengthening trade through Skouw, Jakarta aims to push its exports deeper into the Pacific, a region that includes growing economies such as Fiji, Vanuatu, and the Solomon Islands.
Already, exports through Skouw in 2024 were valued at over Rp 50 billion (about US$3 million), primarily in household goods. With the upcoming Border Trade Fair, officials expect the trade volume to grow significantly—especially as new products like processed foods, handicrafts, and textiles are introduced to Pacific buyers.
As Wanggai noted, the Trade Fair is not just a temporary event but part of a broader strategy to make Papua the frontline of Indonesia’s Pacific diplomacy.
Diplomacy Through Trade and Culture
What makes the Border Trade Fair unique is that it goes beyond commerce. Organizers have confirmed that the event will feature cultural performances, culinary exhibitions, and tourism showcases, reflecting the deep ties between Papuans and their PNG neighbours.
Trade fairs, after all, are as much about relationships as they are about business. By showcasing culture alongside commerce, the fair aims to strengthen the bonds between two peoples who share common traditions, languages, and histories.
In this sense, the Border Trade Fair is also a form of soft diplomacy—a way for Indonesia to project its cultural and economic influence deeper into the Pacific, not through speeches or policies, but through human connection and collaboration.
Challenges on the Road to Growth
Despite the optimism, challenges remain. Cross-border trade has long been complicated by porous borders, smuggling, and inconsistent documentation. Many PNG citizens crossing into Skouw do not carry passports or visas, limiting their ability to travel beyond the border market.
Security risks also persist. Border areas have at times been vulnerable to illegal activities, from drug trafficking to smuggling of goods. Managing these challenges requires close coordination between customs, immigration, the military, and local communities.
Another challenge lies in infrastructure and logistics. While Skouw PLBN is well-equipped, connecting roads, warehousing, and distribution networks within Papua need to be strengthened if the region is to handle larger trade volumes. Without these, the dream of becoming a Pacific trade hub could remain underutilized.
Momentum in Bilateral Relations
The Trade Fair also reflects the momentum in Indonesia–PNG relations. In recent years, leaders from both countries have signed agreements on cross-border land transport, health cooperation, education exchanges, and preferential trade. Bilateral trade has grown rapidly, from US$172 million in 2020 to over US$322 million in 2021, with a steady upward trajectory since then.
The Border Trade Fair, therefore, serves as both a symbol and a mechanism for deepening these ties. By hosting businesses, policymakers, and cultural actors in one space, it provides the practical infrastructure for these agreements to flourish.
The Local Dimension: People-to-People Benefits
For the residents of Skouw and surrounding villages, the Trade Fair is not just about high-level policy—it is about tangible benefits. Local traders can sell more products, hotels and transport operators can see increased demand, and farmers can find new buyers for their produce.
Equally important, the event gives ordinary Papuans a chance to interact with their neighbours across the border, breaking down stereotypes and building trust. For communities that have sometimes felt isolated or marginalized, the Trade Fair offers a chance to feel part of something larger—a regional economy and a shared future.
October as a Turning Point
As October approaches, preparations are underway: stalls are being prepared, exhibitors confirmed, and delegations from PNG invited. Security forces, customs, and immigration officials are coordinating to ensure smooth operations.
For Papua, the stakes are high. Success at the Border Trade Fair could validate years of investment in Skouw PLBN and set the stage for future events. It could also give confidence to investors, showing that Papua is ready to host international business activities.
For Indonesia, the fair is a chance to send a message to the Pacific: that it is not only a Southeast Asian power but also a Pacific partner—committed to building prosperity across the ocean.
Conclusion
The Indonesia–Papua New Guinea Border Trade Fair 2025 is more than a marketplace. It is a vision—a reimagining of the border as a gateway to opportunity rather than a line of division.
From small traders in Jayapura to policymakers in Jakarta, from cultural performers to Pacific buyers, the event brings together diverse actors under a common purpose: to create prosperity, foster peace, and build partnerships that extend far beyond the Skouw–Wutung crossing.
As the fair opens its doors in October, Papua will showcase not just its products but its potential. For a region long associated with challenges, this is an opportunity to rewrite the narrative—placing Papua at the forefront of Indonesia’s Pacific engagement.
If successful, the Border Trade Fair will not only boost Papua’s economy but also strengthen Indonesia’s role as a bridge between Asia and the Pacific. And in that bridge lies the promise of a brighter, more interconnected future.
