In this issue of Vision, we bring you a new perspective on Indonesia, the reasons why you need both a savings plan and life protection, and we share the innovations we’re developing to seamlessly deliver world leading the services to you.

In this issue:

Incentives and opportunities - It’s time to talk about Indonesia

Introduction to PCS by Mercer, non-face-to-face process

Why you need life protection and a Savings Plan

Case study: Financial security, income and effective wealth transfer for multiple generations

Beautiful Edmonton

Incentives and opportunities - It’s time to talk about Indonesia

Recent legislative changes in Indonesia could potentially transform the country’s economy. To understand why it’s now crucial to discard previously held assumptions about Indonesia and explore its extraordinary growth potential, PCS by Mercer spoke to Ms. Kexin Lim, Tax Partner at PwC Singapore and Mr. Andrias Hendrik, Tax Partner at PwC Indonesia. Together, Kexin and Andrias work on many market leading assignments along the Singapore-Indonesia corridor especially for private clients and family business groups. The conversation took place on 5 April 2021.*


Indonesia's Job Creation Bill (widely referred to as the Omnibus Law) passed on 5 October 2020 and effectively came into law almost a month later on 2 November. The Omnibus Law is aimed squarely at bringing greater flexibility and extensive reforms to the Indonesian economy. If it lives up to its ambitions, it has the potential to supercharge what is already the world’s 16th largest economy by nominal GDP.


The Omnibus Law is expediting approval processes, boosting the country's global competitiveness in manufacturing, simplifying business licensing procedures, enhancing the investment environment, and incentivizing onshore capital flow – in short, greatly increasing the ease of doing business and investing in Indonesia. 


While implementing the revision of 79 laws is yet to be tested by time and the sheer number of simultaneous changes have the potential to produce unintended consequences, the Omnibus Law’s prospective impact on onshore and offshore investments as well as active business opportunities cannot be understated. 



The Omnibus Law is introducing strong incentives to Indonesia’s already dynamic and fast-changing market.


Key changes include broadening foreign investment in some rapid-growth sectors that were previously on the negative list. Telecommunication, technology, and media, including all telecommunication network and service activities, can now be 100% foreign owned compared with previous foreign investment restrictions of 67%.


Significant taxation changes are also taking place. Clearer tax-status definition and more transparent recognition of worldwide taxation status helps to encourage investment flow while full or partial tax exemptions for some reinvestments of onshore dividends are freeing up capital between active business and investments. 


Key changes that could present game-changing opportunities


International Investors Indonesian Investors
  • Broadening of foreign ownership restrictions – more categories of investments are now open to foreign investors. There are also foreign shareholding increases in select sectors
  • Tax exemptions for onshore reinvestment capital
  • Significantly reduced minimum capital requirements, especial in the tech sector
  • Regulatory tax changes across 11 segments.  
  • Additional clarity on the conditions for tax status, including preserving non-resident tax status while maintaining Indonesian citizenship and worldwide tax regime compliance. There are also additional clarity and incentives for those who have tax-resident status
  • Tax exemption for dividends (under certain circumstances) – enabling better onshore and offshore-onshore capital recycling
  • Considerable simplification of the business regulatory environment.


At a minimum, the incentives warrant a reassessment of the balance between investment and active business capital for those already in the Indonesian market. For those not yet in the emerging market, the incentives should prompt an exploratory conversation with experts on the archipelago.


Top five investment realization

Q4 2020 – by country of origin**

  1. Singapore US$ 2.6 B (33.9%)
  2. China US$ 1.3 B (17.3%)
  3. Hongkong US$ 1.1 B (13.7%)
  4. South Korea US$ 0.7 B (9.1%)
  5. Japan US$ 0.5 B (5.9%)



Strong venture capital, private equity and sovereign wealth f und flow into Indonesia indicate fundamental growth opportunities. Even beyond the Omnibus Law incentives, the emerging market is dynamic, innovative, flexible and has a unique energy – powered by ambition.


Also fuelling the economy are the country’s ever-growing middle class, digitization of the SMEs and traditional family-owned businesses (warungs), not to mention the underlining domestic demand in the world’s 4th largest population. 


Whilst strong interest remains in the more traditional investment sectors of natural resources and infrastructure, the tech space is attracting significant global investment from behemoths like Google and Microsoft.


In late 2020, alongside Singapore’s Sovereign Wealth Fund, Microsoft announced it had made a "strategic investment" in e-commerce platform Bukalapak. This year, investments in the archipelago's other unicorns such as Gojek and Tokopedia are set to reach hundreds of millions.


An open mindset to leverage a constantly churning environment


The COVID-19 pandemic hurdles aside, Indonesia is moving fast. To fully explore its depth of potential and successfully maneuver through the legislative and directional changes, an open mindset is crucial, so is advice from experts who understand the country.


The speed of change, latent ambitions of a youthful and innovative populace together with the incentives and opportunities mean that it is time to seriously reframe Indonesia. 










Kexin Lim

Kexin Lim

Andrias Hendrix

Andrias Hendrik

* PCS by Mercer spoke to Kexin Lim, Tax Partner at PwC Singapore and Andrias Hendrik, Tax Partner PwC Indonesia and this is an edited excerpt of our conversation. 


This excerpt reflects their views and available data on Monday 5th April 2021. This article is general in nature and not intended as advice; it might not be appropriate to you.

Introduction to PCS by Mercer, non-face-to-face process

PCS by Mercer are pioneers in remote client service for the ultra-high net worth. We are seamlessly delivering risk solutions despite global lockdowns and border closures. Bill Johnston, Global Head of Sales, explains how we are continuing to provide best-in-industry and personalized services to clients, wherever they might be in the world.

Why you need life protection and a Savings Plan

One of the privileges of wealth is that it tempers life’s extremes. Exceptional insulation, however, doesn’t negate the need for contingency plans. The pandemic and the ongoing global socioeconomic volatility have only further underlined the need to plan – for the unexpected and the unimaginable.


What does “Plan B” look like for high net worth (HNW) individuals? And how do you manage the vagaries of life on a generational scale?


PCS solution

Life protection for the unexpected


Life expectancy has more than doubled since the year 1900i, but life is finite and the unexpected does happen.


Life Protection is your family’s insurance against financial uncertainties, especially in the event of untimely accidents. It provides immediate and substantial liquidity when it is most needed, particularly for those with predominately illiquid assets.


The main “limitations” of a life protection plan are that it provides for one moment in time and that it doesn’t provide for the policyholder in their own lifetime – that’s where a life protection plan can work in synergy with a savings plan.


A Savings Plan can give you freedom of choice by giving you long-term financial certainty


Savings Plans are unique financial instruments that have evolved specifically to accommodate the unique needs of HNW individuals. It can actualize your foresight and vision – not just throughout your life, but for all the generations of your family to come.


The combined functionalities of savings plans are hard to replicate with any other single financial instrument without the additional complexity of holding structures such as trusts. Depending on the policy, it can also work in perpetuity – for all future generations. Extraordinarily flexible, the other benefits of savings plans include using it as:


1.       A wealth accumulation and transfer solution


Savings plan is an invaluable wealth accumulation and management tool. Specifically designed to accrue over time and facilitate wealth transfer, it allows you to manage – in detail – how, with whom, and when you wish to share your assets. Policy ownership can be readily and continuously transferred, allowing you to leverage time and compound interest.1


2.       A source of annuity


In fluctuating markets, having a source of steady income is more compelling than ever. If you don’t want/need the income at any time, you can choose to leave payments to accumulate.


3.       A death benefit settlement option


One of the flexibilities in savings plans is that you can choose to assign beneficiary (ies) and distribute policy payments according to the policy owner’s wishes. This can be done as a lump sum or by annual installments over any prescribed period (up to 50 years). 


4.       Wide-ranging choices


A savings plan provides choices between:


  • Emphasis on growth or guarantees
  • Earlier or later annuity income
  • Premium modes – lump sum premium (with financing^), or annual instalments across 2, 5, or 10 years for better cash flow management


5.       No need for medicals


Savings plan policies are taken without the need for potentially lengthy and complex medical tests and underwriting.


You are unique and PCS by Mercer can customize life protection and a Savings plan for your unique circumstances. We will work with you to build contingency into every aspect of your and your family’s lives – now and always.


1Timescale is dependent on product purchased




^Subject to bank approval

Kexin Lim


Daniel Ling

Senior Vice President

Private Client Services by Mercer Pte. Ltd.


Case study: Financial security, income and effective wealth transfer for multiple generations

We show you how Savings Plans and Life Insurance policies can work simultaneously to protect the long-term prosperity of an entire family now, and into the future.





  • Clients (brother & sister) are 2nd generation family members managing their listed family business
  • The family business was started from humble beginnings by their parents, so the siblings are conscious of respecting, and protecting, their hard-earned wealth – for themselves and their future generations
  • They want to ensure their wealth can grow, and last, several generations, while providing income when needed
  • The siblings prefer financial instruments that are more stable, long-term and require minimal monitoring, particularly for their children. The preference is to balance the riskier nature of their listed business and their other investments, which have higher risk profiles in order to remain competitive and generate higher returns




Working with their private bank and PCS by Mercer, the Clients set up:

  • Individual trusts with themselves as the settlors and their children as the trust beneficiaries
  • Total of six Hong Kong Savings Plans for themselves and their children
  • Two Life Insurance policies insuring themselves for a total cover of US$22.5 million


Key takeaways


  1. Savings Plans provide long-term wealth growth and income. The financial instruments can be passed on to future generations for seamless continuity and effective wealth transfer
  2. Savings Plans are simple, but highly effective and hassle-free generational wealth transfer solutions. Putting them into a Trust enhances this further
  3. Life Insurance policies will provide the 3rd generation with immediate liquidity and financial security should the unexpected happen to either of the Clients
  4. Savings Plans and Life Insurance policies together provide greater certainty and security, complementing their higher risk business and investments
Kexin Lim


Daniel Ling

Senior Vice President

Private Client Services by Mercer Pte. Ltd.