Skip to Content

What the Pukpuk Treaty Means for Business in the Pacific

Papua New Guinea’s cabinet has approved the Pukpuk Mutual Defence Treaty with Australia, a step toward a formal alliance that includes mutual defence obligations and a pathway for up to ~10,000 PNG citizens to serve in the ADF—subject to both parliaments’ ratification. For business, this points to multi-year demand in defence, infrastructure, training, logistics, cyber, and services tied to PNG’s security uplift and Australia’s Pacific posture.
2 October 2025 by
What the Pukpuk Treaty Means for Business in the Pacific
anas.yaghmour0@gmail.com

What’s new (and why it matters) system


  • Alliance-level commitment: The treaty would commit each country to assist the other if attacked—elevating the relationship beyond existing cooperation frameworks and giving long-term certainty to planners and investors.

  • ADF workforce pipeline from PNG: Provisions foreshadow large-scale recruitment of PNG nationals into the ADF, addressing Australia’s staffing gaps and creating training, vetting, medical, accommodation and mobility needs across both countries. 

  • Continuity with (non-military) security cooperation: It layers over the Australia–PNG Bilateral Security Agreement (in force since early 2025) that already channels funding into policing, cyber, and internal security—broadening the opportunity set beyond uniformed defence.

Where the opportunities are?

1) Defence, training & sustainment

  • Recruit-train-retain pipelines: Language education, fitness/medical screening, RPL/bridging courses, and NCO development. Expect tenders for training providers, vocational colleges and universities

  • Equipment & sustainment: Light vehicles, patrol craft spares, comms, base services, and apparel/PPE. PNG’s force expansion ambitions (regular + reserves) imply multi-year sustainment contracts.

2) Infrastructure & construction

  • Base upgrades & housing: Accommodation, messes, medical and dental, training ranges, wharves and airstrips—often with local-content targets. Ties neatly to Australia’s prior $200m internal-security funding envelope flowing through projects.

3) Cyber, ICT & secure networks

  • Hardening sovereign systems: Identity/access, secure cloud, SOC services, and incident response for both defence and civil agencies under the wider security cooperation agenda.

4) Logistics & mobility

  • Air/sea lift and sustainment: Port handling, cold-chain for medical supplies, and rotational logistics between northern Australia and PNG. Expect framework agreements rather than one-off contracts.

5) Professional & community services

  • Legal, HR, compliance, liaison: Visa/mobility services for PNG recruits, complaints handling and welfare frameworks, cultural-competence training, and community engagement for host regions.

Risk & reality check

  • Not fully ratified (yet): PNG cabinet approval is a major step, but parliamentary ratification in both countries remains. Build conditional bid plans and contract clauses that align awards with entry-into-force milestones. Reuters

  • Geopolitical sensitivities: Beijing has publicly signalled concern; PNG also balances relationships. Messaging and community engagement need to emphasise sovereignty and capability uplift rather than bloc politics. Financial Times+1

  • Domestic capacity constraints: PNG delivery environments can face land access, skills, and procurement bottlenecks—factor timelines and local partnerships accordingly. (Analytic inference supported by development policy commentary.)

Timeline: what to watch next


  1. Ratification steps in Port Moresby and Canberra (watch order papers and committee scrutiny). Reuters

  2. Early implementation packages under the existing Bilateral Security Agreement (RFTs for training, ICT, and facilities). DFAT

  3. ADF recruiting pilots for PNG candidates—expect phased intakes before scaling. 


How businesses can position now (checklist)

  • Map relevance: Which of your capabilities land in defence training, base services, cyber, health or logistics?

  • Line up partners: Identify PNG JV/consortium partners to meet local-content expectations and smooth delivery.

  • Compliance ready: Prep for Defence Industry Security Program (DISP), supply-chain assurance, and anti-bribery controls.

  • Talent strategy: Build teams with Melanesian cultural literacy and Pacific stakeholder experience.

  • Engage early: Brief DFAT/Defence desks and PNG agencies on value-for-money offers tied to sovereignty and skills transfer.

Start writing here...