FRESH air, trees, open roads, and a simpler way of life are often the first images that come to mind when we think of the provinces. These familiar scenes reflect traditions and ways of life that continue to endure despite the rapid pace of globalization, digitalization, artificial intelligence, and constant innovation.
While society continues to evolve, our heritage and culture remain evident through local traditions, community celebrations, craftsmanship, and everyday practices passed from one generation to the next. Much of this cultural heritage continues to be preserved through the stewardship of Indigenous Peoples (IPs).
According to the United Nations (UN), there is no single universally-accepted definition of IPs in international law and policy because it may fail to capture their diversity within a narrow description. Instead, the UN emphasizes their right to self-identification, alongside key criteria including community recognition, historical continuity with pre-colonial or pre-settler societies, strong ties to ancestral lands and natural resources, distinct social, economic, political, cultural, and linguistic systems, and a commitment to preserve their ancestral environments and identities.
Latest estimates from international organizations indicate that there are approximately 476.6 million IPs worldwide. Representing only around 6.2 percent of the global population, they continue to be excluded from national and international decision-making processes.
Urbanization, industrialization, and infrastructure projects have frequently overlooked their rights to ancestral lands, territories, and natural resources, proceeding without proper consultation and collaboration. This places them at greater risk of poverty and social marginalization, often leading to disruptions in their way of life, such as loss of livelihood, forced relocation, and the potential loss of cultural practices and identity. Similarly, as the Philippines is home to an estimated 17 million IPs, they also experience these unfortunate circumstances. In the country, there are notable cases involving the construction of dam projects, opposition to mining activities, and other business-related disputes.
Guided by international policies, the government has protected their rights through the implementation of Republic Act (RA) 8371, or the I Indigenous Peoples’ Rights Act (Ipra) of 1997, which recognizes and promotes the rights of Indigenous Cultural Communities/IPs (ICCs/IPs). The main purpose of this law is to safeguard their rights to ancestral lands and domains, respect their customs, traditions, and economic and political systems, and ensure equal access to basic government services such as education, employment, and health.
An important provision of RA 8371 secures the right of IPs to ‘free, prior and informed consent,’ ensuring that before any activity that may affect their lives, communities, lands, territories, natural resources, or traditional knowledge commences, they are provided with all relevant information and are able to give their voluntary consent free from coercion, manipulation, or intimidation. The law also enables IPs to participate in decision-making and policymaking through the ‘Indigenous Peoples Mandatory Representative’ mechanism, ensuring their representation in local government. One example of this was the successful implementation of the FPIC process during the Angat Water Transmission Improvement Project, where approximately hundred members of the Indigenous Dumagat community and representatives of the Philippine government participated in six consultation meetings before reaching a consensus. The agreed terms included community benefits and livelihood support, demonstrating that infrastructure development can uphold IPs’ rights while contributing to socio-economic development.
Protecting the rights of IPs extends beyond promoting fairness and respect-it also recognizes their important contributions to the country’s culture and environment. Despite their relatively small population, IPs have played a significant role in preserving cultural heritage and sustainably managing natural resources for future generations. Their long-standing stewardship of forests, mountains, and marine ecosystems has enabled them to develop traditional ecological knowledge that supports biodiversity conservation and sustainable resource management. One example is the traditional lapat system practiced by Indigenous communities in the Cordillera region, which regulates natural resource use through temporary area closures. This demonstrates how traditional environmental stewardship can complement modern efforts to address climate change and conserve biodiversity.
As business operations increasingly overlap with ancestral domains, companies are expected to assess the social and cultural impact of their activities on indigenous communities. This requires conducting appropriate due diligence and stakeholder engagements to understand how operations may impact their rights, territories and communities. Failure to respect these rights may expose businesses to legal, regulatory, and reputational risks, as well as potential disruptions to business operations.
R.G. Manabat and Co. (KPMG in the Philippines) can support organizations in navigating these challenges by identifying affected communities across the value chain, evaluating actual and potential risks and impacts, and providing guidance on relevant regulatory and disclosure requirements. The firm can also assist in developing strategies to strengthen collaboration with IPs and mitigate potential community impacts.
There are still many efforts needed to achieve a better life for the Indigenous people. While modernization is essential for societal growth, it should not come at the expense of Indigenous Communities as it can never replace their value and contributions to the world. Business expansion and modernization should be pursued responsibly to help create an environment where tradition and innovation can coexist and support sustainable development.
© 2026 R.G. Manabat and Co., a Philippine partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG International Ltd., a private English company limited by guarantee. All rights reserved. This article is for general information purposes only and should not be considered as professional advice to a specific issue or entity. The views and opinions expressed herein are those of the author and do not necessarily represent KPMG International, R.G. Manabat and Co. or the BusinessMirror. For more information, you may reach out through ph-kpmgmla@kpmg.com, social media or visit www.home.kpmg/ph.