The new agreement follows PNG Prime Minister Peter O'Neill's visit to Jakarta this week.
President of the PNG Chamber of Commerce and Industry, John Leahy, has told Radio Australia's Pacific Beat the proposed new direct air-link will not only benefit people from PNG and Indonesia.
"The idea is that they would utilise the 737 aircraft and travel from Nadi through Honiara, Moresby and then on to Bali," he said.
"There could potentially be opportunities for passengers to come from the other Pacific Islands as well through Port Moresby and onto Bali."
The booming oil and gas sectors along the Indonesia-PNG border were also discussed during prime minister O'Neill's visit to Jakarta.
"There could be pipelines that could be used and the product could be shipped via Papua New Guinea rather than another pipeline having to be built on the Indonesian side," Mr Leahy said.
"Those discussions are going on and the governments are committed to cooperative arrangements to facilitate the private sector to be able to facilitate things in that sort of cooperative way."
Around 80 PNG business people accompanied prime minister O'Neill on the trip.
This was the first state visit to Indonesia by a PNG leader and the first major business mission in more than 20 years.
ABC News