Local media has reported that chief superintendent Donald Yamasombi has been tasked by police commissioner Gary Baki to set up the new command, which will be headquartered in Madang.
It will target arms smuggling, drugs smuggling, and human trafficking in the border regions of Western, East and West Sepik provinces.
Memorandums of understanding were signed between PNG and Indonesia in May, in which Prime Minister Peter O'Neill and President Joko Widodo agreed to cooperate in tackling transnational crime, as well as petroleum and energy development.
At the time, O'Neill said he hoped increased engagement with Indonesia would boost cross-border trade and infrastructure development.
"We agreed to strengthen economic opportunities along the border region where Indonesia is investing in infrastructure that we would like to have access," he said.
"This includes telecommunications, power generation and the road infrastructure that is being built and has a waiting market in PNG."
