Finance Secretary Benjamin E. Diokno showcased the Philippines’ competitive investment ecosystem to the Indonesian business community during the Philippine Investment and Financial Briefing on August 23, 2023 at the Philippine Embassy in Jakarta, Indonesia.
The event kicked off the Secretary’s activities in Jakarta as he will be representing the Philippines in the 10th ASEAN Finance Ministers and Central Bank Governors’ Meeting from August 24 to 25.
“To help foster the development of high quality, modern, and sustainable infrastructure in the country, we wasted no time in building a fertile business and investment ecosystem for private players,” Secretary Diokno said in his keynote message.
Secretary Diokno said that the administration of Ferdinand R. Marcos, Jr. is intent on pursuing high-impact investments in public infrastructure, digitalization, and human capital development for inclusive and sustainable economic growth.
To make the country’s policy environment conducive to impactful public-private partnerships (PPPs), the government revised implementing rules and regulations (IRR) of the Build-Operate-Transfer (BOT) Law to strengthen the financial viability and bankability of PPP projects; improved the Investment Coordination Committee (ICC) Guidelines on PPP approvals to ensure faster processing and approval of PPPs; and enhanced the National Economic and Development Authority (NEDA) Joint Venture (JV) Guidelines to align with the revised IRR of the BOT Law and the proposed PPP Act.
The PPP Act, which is currently pending in the Senate, consolidates all legal frameworks on PPP and creates a unified system for investors to refer to when engaging in PPP projects.
Apart from the amendments to the Retail Trade Liberalization Act, Foreign Investments Act, and Public Service Act, as well as the opening of the renewable energy (RE) sector to full foreign ownership, the government has rationalized and redesigned the country’s corporate income tax structure and incentives system.
The Corporate Recovery and Tax Incentives for Enterprises (CREATE) Law offers qualified business activities and projects a menu of generous and flexible fiscal and non-fiscal incentives, while ensuring that the grant of these incentives is performance-based, time-bound, targeted, and transparent.
Secretary Diokno then outlined the qualified industries and projects under the 2022 Strategic Investment Priority Plan (SIPP), which presents a tiered approach to incentives.
Tier 1 includes all activities under the 2020 Investment Priorities Plan (IPP); Tier 2 includes activities that fill the gaps in the value chain and are import-competing; and Tier 3 includes those that support the accelerated transformation of the economy through innovation.
In line with this, the PBBM administration rolled out the implementation of Green Lanes for Strategic Investments through Executive Order No. 18, thereby expediting government processing of licenses and permits for critical investment projects aligned with the Philippine Development Plan (PDP) 2023-2028.
“This will directly improve the ease of doing business in the country by expediting and streamlining the processes and requirements for strategic investments,” Secretary Diokno said.
Secretary Diokno also shared that President Ferdinand R. Marcos, Jr. recently signed into law the Maharlika Investment Fund (MIF) Act of 2023––the Philippines’ first sovereign investment fund that will serve as a platform for investors to engage in direct equity investments in Philippine ventures, as well as the 197 Infrastructure Flagship Projects (IFPs) approved by the NEDA Board.
The Secretary then highlighted the role of the Regional Comprehensive Economic Partnership (RCEP) – the world’s largest free trade agreement – in boosting market access, enhancing trade relations, and promoting inclusive regional economic policies.
After his keynote, Secretary Diokno joined Philippine Ambassador to Indonesia Gina A. Jamoralin in a moderated discussion before an audience of chambers of commerce and industry, diplomatic missions, and both Philippine and Indonesian businesses in Jakarta. He answered questions on increasing agricultural productivity and strengthening Philippine-Indonesian trade.
The event was organized by the Philippine Embassy in Indonesia, led by Ambassador Gina A. Jamoralin. It was attended by Indonesian and Philippine private sector representatives and foreign embassies in Jakarta, including heads of the Indonesian Chamber of Commerce and Industry (KADIN) and the Philippine Business Club Indonesia (PBCI).
