1987 Constitution The State shall promote industrialization 

ARTICLE I and full employment based on sound 

National Territory agricultural development and agrarian 

The national territory comprises the

reform, through industries that make full 
Philippine archipelago, with all the islands
and efficient use of human and natural 
and waters embraced therein, and all other
territories over which the Philippines has
resources, and which are competitive in 
sovereignty or jurisdiction, consisting of its
terrestrial, fluvial, and aerial domains, both domestic and foreign markets. 
including its territorial sea, the seabed, the
subsoil, the insular shelves, and other However, the State shall protect Filipino 
submarine areas. The waters around,
between, and connecting the islands of the enterprises against unfair foreign 
archipelago, regardless of their breadth and
dimensions, form part of the internal waters competition and trade practices. 
of the Philippines.

ARTICLE XII  In the pursuit of these goals, all sectors 

of the economy and all regions of the 

National Economy and Patrimony 
country shall be given optimum 

SECTION 1. The goals of the national  opportunity to develop. Private 

economy are a more equitable  enterprises, including corporations, 

distribution of opportunities, income,  cooperatives, and similar collective 

and wealth; a sustained increase in the  organizations, shall be encouraged to 

amount of goods and services produced  broaden the base of their ownership. 

by the nation for the benefit of the 

SECTION 2. All lands of the public 
people; and an expanding productivity 
domain, waters, minerals, coal, 
as the key to raising the quality of life for 
petroleum, and other mineral oils, all 
all, especially the underprivileged. 
forces of potential energy, fisheries, 

forests or timber, wildlife, flora and 

fauna, and other natural resources are  The State shall protect the nation’s 

owned by the State. With the exception  marine wealth in its archipelagic waters, 

of agricultural lands, all other natural  territorial sea, and exclusive economic 

resources shall not be alienated. The  zone, and reserve its use and enjoyment 

exploration, development, and utilization  exclusively to Filipino citizens. 

of natural resources shall be under the 

The Congress may, by law, allow 
full control and supervision of the State. 
small-scale utilization of natural 
The State may directly undertake such 
resources by Filipino citizens, as well as 
activities, or it may enter into 
cooperative fish farming, with priority to 
co-production, joint venture, or 
subsistence fishermen and fishworkers 
production-sharing agreements with 
in rivers, lakes, bays, and lagoons. 
Filipino citizens, or corporations or 

associations at least sixty per centum of  The President may enter into 
whose capital is owned by such citizens.  agreements with foreign-owned 
Such agreements may be for a period  corporations involving either technical 
not exceeding twenty-five years,  or financial assistance for large-scale 
renewable for not more than twenty-five  exploration, development, and utilization 
years, and under such terms and  of minerals, petroleum, and other 
conditions as may be provided by law. In  mineral oils according to the general 
cases of water rights for irrigation, water  terms and conditions provided by law, 
supply, fisheries, or industrial uses other  based on real contributions to the 
than the development of water power,  economic growth and general welfare of 
beneficial use may be the measure and  the country. In such agreements, the 
limit of the grant.  State shall promote the development 
and use of local scientific and technical  hectares, or acquire not more than 

resources.  twelve hectares thereof by purchase, 

homestead, or grant. 
The President shall notify the Congress 

of every contract entered into in  Taking into account the requirements of 

accordance with this provision, within  conservation, ecology, and development, 

thirty days from its execution.  and subject to the requirements of 

agrarian reform, the Congress shall 

SECTION 3. Lands of the public domain 
determine, by law, the size of lands of 
are classified into agricultural, forest or 
the public domain which may be 
timber, mineral lands, and national 
acquired, developed, held, or leased and 
parks. Agricultural lands of the public 
the conditions therefor. 
domain may be further classified by law 

according to the uses which they may 

be devoted. Alienable lands of the public 

domain shall be limited to agricultural 

lands. Private corporations or 

associations may not hold such 

alienable lands of the public domain 

except by lease, for a period not 

exceeding twenty-five years, renewable 

for not more than twenty-five years, and 

not to exceed one thousand hectares in 

area. Citizens of the Philippines may 

lease not more than five hundred