Indonesia’s public debt is forecast to surge to 40.1% of GDP in 2025 from an estimated 29.2% in 2024, according to the World Bank’s April 2025 Macro Poverty Outlook report. The increase is attributed to expanded government spending under President Prabowo Subianto’s administration to support key flagship programs, including major social initiatives. Government expenditure is expected to drive the fiscal deficit to 2.7% of GDP in 2025, exceeding the original 2.53% target.