State moves toward long-term equity deal with Ramu Agri Industries

The State and Ramu Agri Industries Ltd [RAI] are set to enter a long-term equity partnership following successful discussions between Minister for International Trade and Investment Richard Maru and New Britain Palm Oil Limited [NBPOL] Chairman Datuk Mohamad Helmy Othman Basha.

The State is expected to take equity in RAI early next year.

Minister Maru said the investment will be made through the State Equity Funding program alongside other PNG investors.

"He explained that RAI is a strong and profitable company in oil palm, cattle, and sugar, making it easy to raise more capital through a public offering."

The joint ownership will support new expansions in the Sepik Plains for oil palm and cattle, and in Abau, Central Province, for sugar development.

He said government participation is important to give confidence to RAI as it moves into new areas. This aligns with the Government’s goal to double the palm oil industry and reduce sugar and cattle imports.

Meanwhile, RAI is owned by NBPOL. It manages over 92,000 hectares of planted oil palm across five provinces and employs more than 20,000 Papua New Guineans. The company also supports thousands of smallholder farmers and service providers.

Minister Maru highlighted PNG’s strong oil palm sector, which earned K2.2 billion from exports. He said expanding production could create up to two million jobs and generate over K20 billion annually.

On sugar, he said PNG imports large quantities each year but has the potential to replace imports and even export sugar. He stressed the need to grow the industry without relying on tariff protection.

NBPOL will soon issue a formal offer for the State to take equity, after which Cabinet approval will be sought. The Minister assured the company of full government support.