Indonesia expects S&P Global Ratings' vote of confidence in its sovereign credit profile to help stabilize the domestic bond market after a selloff in June, according to a top finance ministry official.

The affirmation comes as a relief to investors who had grown concerned about the country's fiscal outlook amid global economic uncertainty. Indonesia's bond market experienced significant outflows last month as rising global interest rates prompted a reassessment of emerging market risk.

The S&P decision to maintain the country's investment-grade rating with a stable outlook signals continued confidence in the government's fiscal discipline and economic resilience. Officials hope this endorsement will stem the tide of capital flight and restore stability to local debt markets.

The finance ministry emphasized that the rating affirmation reflects the effectiveness of its policy framework in navigating external headwinds. Market participants will be watching closely to see if the positive sentiment translates into sustained buying interest in Indonesian government bonds. The development underscores the importance of credit ratings in shaping investor perception and capital flows for emerging economies.