JAKARTA, March 21 (Xinhua) -- Indonesia, Papua New Guinea and Fiji agreed on Thursday to start negotiations over preferential trade agreement which is expected to boost trade and investment among the nations.

The agreement was reached during the Indonesia South Pacific Forum (ISPF) in Jakarta.

"One of the results of the ISFP meeting is that Indonesia agreed to the commencement of negotiation over preferential trade agreement with Papua New Guinea and Fiji," Indonesian Foreign Minister Retno Marsudi said.

The agreement was expected to drive up trade volume and ease barriers in trade and investment, Minister Retno said.

The minister said that Indonesia and countries in South Pacific region face common challenges particularly in creating balance between pursuing higher economic growth and preserving environment.

"I reaffirm Indonesia's commitment to cooperate with countries in South Pacific in addressing problems and maximizing common potentials for the prosperity of our people," she said.