Consumer confidence has remained upbeat, and this is mirrored by the robust retail sales growth. The stabilisation of the rupiah in recent months and the tapering of interest rates in the secondary debt market since September-October 2018 augur well for business operations and for public and private capital spending. Tax cuts for exporters who keep their earnings in the domestic banking system should strengthen external buffers, while the adjustment of the negative list and new rules on tax holidays look positive for investment.