ppppoorrttuunniiISSUEtt 1 • 2013yy Business news, reviews and overviews from the IPA

BOX IN THE MD’s IN [email protected]. In future NEWS issues such feedback will be published in the Let’s Hear It column in the newsletter. For example, we welcome your views on Forum strengthens the Online Business Registration Program, business relationship which we are about to roll out. IPA has between PNG and taken considerable steps to see this project come into fruition. We are confident online Indonesia registration will benefit thousands of businesses. Good business relations between You can read more information about the project PNG and its neighbour Indonesia in this issue of Opportunity. were given a boost with the success Unsure about business procedures or registration of a business forum held recently in processes? If so, email your query and we’ll Jakarta. The aim of the Forum was answer it in the Question Time section. to strengthen economic cooperation In the News this issue we take you on two and bilateral ties between the two Ivan Pomaleu successful trade missions, one to Indonesia, countries. It is with great pleasure which coincided with Prime Minister Hon. Peter O’Neill’s official state visit to Indonesia The forum coincided with the official state visit of we bring you the first and the second to the Solomon Islands. Prime Minister Hon. Peter O’Neill at the invitation issue of Opportunity. We also welcomed a business delegation from of his Indonesian counterpart His Excellency Belgium seeking opportunities in investment President Susilo Bambang Yudhoyono, who As the name suggests, Opportunity will bring and trade. made his official visit to PNG in 2010. to your inboxes valuable information about In Opportunity Knocks we feature Yha Hauka ’s trade and investor arena. IPA led a delegation from PNG’s private sector Kopi Limited from Morobe Province who seeks representing 46 companies from the con- The fresh new format is designed to foster a joint venture partner to develop its business struction, oil & gas and other prominent PNG open communication between IPA and the to assist its rural coffee growers. industries as well as state-owned enterprises. PNG business community and your advisers. I encourage you to take a short break to read We encourage you to share your views on During the forum both countries signed eleven this first issue of Opportunity. business and investment or any of IPA services. agreements comprising three treaties and eight Please feel free to email your comments to Ivan Pomaleu, Managing Director Memoranda of Understanding in a range of key areas, including education and training, tourism Don’t risk de-registration. and extradition. & Lodge annual returns In addition a number of business-to-business Traps MOUs were signed in the areas of oil and on time! gas, banking and finance, telecommunication Registered PNG companies are required to If you can’t get your return in before the due and water. submit annual returns to the Companies date and need an extension of time, lodge a A signing ceremony also took place between Office within the IPA on time or risk being Form 55 with the Companies Office. the PNG Chamber of Commerce & Industry de-registered. On time lodgment also saves When completing your return make sure the (PNGCCI) and the Indonesian Chamber of you having to pay a late fee of K150 on top information it contains is consistent with Commerce & Industry (KADIN), which was of the K50 lodgment fee. records held by IPA. witnessed by Prime Minister O’Neill, government Irrespective of who owns the company or The Companies Office publishes in the media ministers and their Indonesian counterparts. how long it’s been operating, the Registrar of a list of companies that face de-registration for IPA presented a paper on “Doing Business in Companies may issue a notice to remove a not meeting their legal requirements. This PNG” following a presentation by the Indonesia company from the register if the company’s information is also available on the IPA website Investment Board (BKPM) on “Doing Business annual return is 6 months late or if the company www.ipa.gov.pg fails to submit documents required by the Office. in Indonesia”. ■ Stay off that list by lodging your De-registered companies are not permitted annual return on time! to conduct businesses in PNG. More News stories next page

INVESTMENT PROMOTION AUTHORITY... PAGE 1 continued IN THE NEWS Belgians on the look-out for business in PNG A business delegation from Belgium visited Papua New Guinea recently on a fact-finding mission to seek out local investment and trade opportunities. Former Ambassador of the Kingdom of Belgium to Australia, His Excellency Patrick Renault led the nine- member Belgian delegation, accompanied by First Secretary, Political and Economic Affairs, New Zealand High Commissioner to PNG Marion Crawshaw (left) and Carolyn Blacklock from IFC (right) David Jordens, and two trade present Ivan Pomoleu, Managing Director of IPA, with funding for the Online Registry Program. Commissioners from the Walloon and Flemish regions of Belgium. Countdown to Online Registry The Belgian group included Besix International, Very soon Papua New Guinean New Zealand Companies Office in assisting Eloy Water, Dredging International, Australia businesses will be able to register PNG to make the transition to the new on-line environment. This assistance will be invaluable (DEME), Jan De Nul and Sarens, companies their businesses from the comfort with interests in building and construction, the as NZCO is a world-recognized leader in of their own premises. business registration. financial sector, water and sanitation Thousands of companies from PNG are set to engineering, energy and heavy industries, “The level of expertise NZCO possesses is benefit from the much-anticipated Online dredging and hydraulic engineering. invaluable to us. As well as the suitability Business Registration program, which the of the software application to our situation, IPA arranged a one-day seminar in Port Government is introducing through the the experience and expertise NZCO has in Moresby for the Belgian investors to establish Investment Promotion Authority. managing a business registry office simply business contacts with leading PNG IPA’s Online Lodgement System will allow clients cannot be replicated by any private party,” organisations, including the Bank of Papua New to lodge company forms, file documents or do said Mr Pomaleu. Guinea, National Capital District Commission, company searches online from anywhere The New Zealand Aid Program is providing grant Department of Petroleum and Energy, without coming to the IPA front counters. funding to support the engagement of the New Department of Transport, National IPA has been developing the program with Zealand Companies Office. NZ Companies Office Development Bank, PNG Ports Corporation, assistance from the IFC (a member of the World support will facilitate a thorough User Acceptance WaterPNG, Independent Public Business Bank Group) and the New Zealand Aid Program. Testing process and will assist IPA staff conduct Corporation, Department of National Planning “This new online registry is an exciting and much its own User Acceptance Testing with the aim and Monitoring, PNG Power Ltd, Department of needed step for PNG business owners, who find of ensuring that the new registry system is fully Treasury, Eda Ranu and Port Moresby Chamber the current registration process cumbersome and operational from the day it is implemented. of Commerce and Industry. a barrier to making their business formal and “New Zealand is very pleased to provide training Ambassador Renault also met with PNG registered,” said Ivan Pomaleu, the Managing so that this proven software can be used in Government leaders including Governor Director of IPA. PNG,” said New Zealand High Commissioner, General Sir , Prime Minister Hon. The New Zealand business registry software Marion Crawshaw. Peter O’Neill, Minister for Foreign Affairs Hon. developer Foster Moore Limited has been “There is enormous potential here for small and Rimbink Pato, Minister for Commerce, Trade contracted to develop the online registry. The medium sized businesses and I am confident and Industry Hon. Richard Maru and Minister for software is based on the software currently used that this online registry will lead to more PNG Environment & Conservation Hon. John Pundari. by the NZ Companies Office (Ministry of entrepreneurs turning their good ideas into Belgian investments in Papua New Guinea Business, Innovation and Employment). successful businesses.” include the Galley Reach Plantation, the biggest IPA made the decision to procure a New Customers without internet access will still be rubber plantation based in Central Province, and Zealand-based system because New Zealand is able to lodge their documents in hard copy Jan De Nul, a sub-contractor for Ok Tedi Mining consistently ranked the top of the World Bank’s at the IPA front counter for some time until Limited, currently carrying out dredging works Doing Business rankings. As well, the chosen the registry process is fully integrated into an along the Fly River. ■ solution gives IPA access to the expertise of the online facility. ■

More News stories next page

INVESTMENT PROMOTION AUTHORITY... PAGE 2 continued IN THE NEWS LEGAL UPDATE Simplified business names registration and easier-to- understand company law for SME entrepreneurs are now a step closer, following the recent endorsement of bills to amend the Business Name Act 1963 and the Companies Act 1997 by the National Executive Council.

Cabinet approval of the proposed bills is required before the bills can be passed by Parliament.

IPA, with assistance from International Finance The recent 74 delegate trade mission to the Solomon Islands attracted plenty of attention from visitors to the business forum and trade exhibition. Corporation (part of the World Bank group), has been working on the legislative review leading Solomon Islands trade mission attracts strong interest up to the submission of the amendments for some time, towards achieving the national Minister for Trade, Commerce and relations between the private sectors of the two Government’s stated aim of encouraging Industry Hon. Richard Maru recently nations and to harness and build on existing investment in PNG by reducing barriers to entry. bilateral relations and partnership under the led a business delegation on a Trade Melanesian Spearhead Group Agreement. and Investment mission to Honiara, In conjunction with the trade fair, Mr Maru also Solomon Islands. The proposed bills aim to: held talks with his Solomon Islands counterpart The PNG business community showed very and their Foreign Affairs Minister. strong interest in the mission, with 74 delegates provide increased protection PNG currently has 51 companies operating in • representing 53 companies across various Solomon Islands, across hospitality, food & and benefits for shareholders industries forming part of the delegation. beverage, banking and finance, information The business visit included a one day business technology, telecommunication, agro industry • clarify the duties imposed forum, trade exhibition and one-to-one business and furniture and consumables industry sectors. talks between the private sectors of both countries. on directors PNG-made products currently hold 75% of the According to Minister Maru the visit had two key Solomon Islands market. ■ objectives - to develop and encourage business • streamline and make more transparent the process of issuing shares ET‘SHEAR IT! L • protect creditors Frangipani Car Hire blooms • simplify annual return Frangipani Car Hire, 100% According to Sios, Frangipani Car Hire has lodgement nationally owned, is blooming. worked hard to achieve its position in the market. “We aspire to provide a high quality, affordable Established in November 2006 • clarify the powers of and friendly service. We have been able to to cater for the increase in tourism, the registrar. compete successfully and now have established the business now has a fleet of a good reputation with clients, banks and 26 quality cars and currently financial institutions and generally in the employs 15 people. communities”. Announcing the endorsement of the bills by Cabinet, Acting Prime Minister said Business owner Janet Sios says the car rental Sios, a qualified accountant, has invested her “The changes are intended to update the act business started in Rabaul in East New Britain knowledge and experience into her group of to bring it in accord with the changing trends, Province with a head office in Kokopo, “the first businesses, which also includes Frangipani using the changes made to the New Zealand flower to bloom after the two volcanic eruptions”. Printing Solution. Companies Act since 1997 as a guide”. Now with branches in Port Moresby, Kimbe and She would like to see the business expand to Further updates on the progress of the bills Kavieng, plans are afoot to expand to other other parts of the country, such as Madang, through Parliament will be featured in future strategic locations in PNG. Lae and Wewak. continued next page issues of Opportunity. ■

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Aside from business, Sios has also built the company reputation on being a good corporate citizen tied in with her advocacy work on health issues. “Currently, we are a major sponsor of Wheels for Change program on Kundu, which highlights disability issues. We have sponsored a food program at the PNG Rehabilitation Centre in Port Moresby and the company is at the forefront of health awareness on lifestyle diseases with successful programs carried out to date.

Sios believes Papua New Guinea offers a lot to be desired in terms of business opportunities. “PNG is a land full of business potential and opportunities. Companies from overseas can come and partner with Papua New Guineans and realize opportunities in the country in areas such as tourism, construction, fishing, agriculture and so much more. ■ Frangipani Car Hire, 100% According to Sios, Frangipani Car Hire has nationally owned, is blooming. worked hard to achieve its position in the market. “We aspire to provide a high quality, affordable Established in November 2006 and friendly service. We have been able to to cater for the increase in tourism, compete successfully and now have established the business now has a fleet of a good reputation with clients, banks and 26 quality cars and currently financial institutions and generally in the employs 15 people. communities”.

Business owner Janet Sios says the car rental Sios, a qualified accountant, has invested her business started in Rabaul in East New Britain knowledge and experience into her group of Province with a head office in Kokopo, “the first businesses, which also includes Frangipani flower to bloom after the two volcanic eruptions”. Printing Solution. Now with branches in Port Moresby, Kimbe and She would like to see the business expand to Kavieng, plans are afoot to expand to other other parts of the country, such as Madang, strategic locations in PNG. Lae and Wewak.

E ‘ PPORTUNITY LTSHEAR IT! continued O KNOCKS Aside from business, Sios has also built the company reputation on being a good corporate citizen tied in with her advocacy work on health issues. “Currently, we are a Coffee producer seeks JV partner major sponsor of Wheels for Change program on Kundu, which highlights disability issues. Yha Hauka Kopi Limited (YHK), a As well, the global market for certified coffee We have sponsored a food program at the certified coffee producer, has been has increased 38%. YHK is keen to develop PNG Rehabilitation Centre in Port Moresby its capacity to supply this growing demand. and the company is at the forefront of health in the coffee business for more than awareness on lifestyle diseases with successful 20 years, dealing with rural coffee The current management is seeking to boost business by helping increase growers’ programs carried out to date. farmers from the rich mountainous production. YHK is seeking an appropriately Sios believes Papua New Guinea offers a lot to terrain of Menyamar and Aseki who experienced joint venture partner able to be desired in terms of business opportunities. produce premium coffee beans make a financial investment of between K1.5 “PNG is a land full of business potential and from their village based plantations. million to K3 million to achieve this strategic opportunities. Companies from overseas can YHK is seeking a joint venture partner with the goal and with the expertise to get the business come and partner with Papua New Guineans back on track. financial resources and management structure and realize opportunities in the country in and capability to help the company develop to In the past YHK has submitted funding areas such as tourism, construction, fishing, its market potential. proposals to the National Government for agriculture and so much more. ■ To date YHK has been supplying both high-end amounts of K1.5 million and K3 million to specialized and conventional certified coffee assist the local community involved in the Do you have a story you would like to share about your business in PNG? from smallholder growers. However the coffee plantation development project. In both Email your story (maximum 300 words) company’s business dealings with the main cases the Government had pledged the funds would be made available. Unfortunately to date and a good quality photo to exporters have not been consistent and in recent [email protected] times have stalled. no money has been forthcoming. However, the funding submissions, which detail the feasibility The company has some infrastructure already in of the project and future viability, are likely to be place, including two dry processing mills and useful to prospective joint venture partners or QUESTION buying depots. Its administration office is potential investors in the project and can be conveniently located in Lae, Morobe Province. TIME made available to interested parties. QQ YHK has a number of other attributes, including For further information on Yha Kauka Kopi Do you have a general question about the a workforce of 83 employees across its locations Limited, contact: regulatory side of running a business or in Lae, its factory in Aseki and its coffee buying the various roles of IPA? If so, email your depot in Menyamar. The company has obtained The General Manager question to [email protected] organic certification from NASAA (National Yha Hauka Kopi Ltd We’ll publish a selection of questions and Association for Sustainable Agriculture Australia) PO Box 1447 our answers in each issue of Opportunity. and Fair Trade Certification. It also has two CIC Lae, Morobe Province If your question is chosen for publication (Coffee Industry Corporation) Dry Processing or go to the link you will go into a draw for the chance to Licenses 2012 for its dry processing factories ■ www.youtube.com/watch?v=4yYnOKY-kqA win a gift. in Lae and Aseki.

Investment Promotion Authority. Here we are...

Port Moresby, Head Office Lae Office Mt. Hagen Office Level 1, IPA Haus, Munidubu Street, P.O. Box 1074 Lae, P.O. Box 1834 Mt. Hagen, (Corner of Lawes Rd and Champion Pde) Morobe Province Papua New Guinea Western Highlands Province Papua New Guinea Konedobu, Port Moresby Phone: (675) 479 2001 Phone: (675) 542 0399 P.O. Box 5053, Boroko 111 NCD, Fax: (675) 479 2001 Fax: (675) 542 0599 Papua New Guinea Email: [email protected] Email: [email protected] Phone: (675) 321 3900 Buka Office Kokopo Office (675) 321 7311 P.O. Box Private Mail Bag Buka, P.O. Box 870 Kokopo, East New Britain Province Fax: (675) 320 2237 Bougainville Papua New Guinea Papua New Guinea Email: [email protected] Phone: (675) 973 9344 Phone: (675) 982 9460 Fax: (675) 973 9344 Fax: (675) 982 9460 www.ipa.gov.pg Email: [email protected] Email: [email protected]

Disclaimer > Opportunity is intended to provide information of a general nature only. The content of this newsletter is not intended to be advice or recommendation. It is not appropriate for the purposes of carrying out a transaction or making an investment decision. > The IPA takes reasonable steps to ensure the information provided in the newsletter is accurate and up-to-date at the time of issue, as well as to obtain reliable content from third parties. However the IPA does not guarantee the accuracy or completeness of the information or endorse the views or opinions given by any third party provider, nor takes any responsibility for any errors made in the process of providing this newsletter.

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