Asia Roundup
Vietnam to Tap Emergency Fund to Cool Surging Fuel Prices
Vietnam moved to tap an emergency fund to cool surging fuel prices, as the Middle East war has disrupted supplies and sparked long queues at petrol stations across the country, AFP reported.
Vietnam initially resisted dipping into its Fuel Price Stabilisation Fund as unleaded gasoline rose 21% and diesel spiked more than 50% after the US and Israel launched their attack on Iran in late February.
At a meeting of the country’s energy security task force on Tuesday, however, the prime minister “agreed in principle” with a proposal by the trade ministry to draw from the fund, the government said on its website.
Funded by major fuel distributors in Vietnam, the fund has not been used since 2023 and currently has a surplus of more than USD 200 million.
Ares Plans Its First Local Currency Private Credit Fund in Asia
Ares Management is planning to establish its first Asia local currency private credit fund in Thailand, as the country emerges as a new market for the asset class, Bloomberg reported.
The proposed vehicle will focus on performing credit, targeting high-quality corporates in Thailand. The fund plans to raise capital primarily from insurance firms operating in the country and earning revenues in Thai baht.
Thailand has emerged as a new frontier for private credit in Asia, as local banks – still burdened by non-performing loans from the auto and housing sectors – have become increasingly selective in extending credit. About USD 4.4 billion of bonds from Thai developers are due this year, creating opportunity for private lenders.
Adani Energy Raises $500 Million Bilateral Debt from Apollo
A unit of Adani Group raised about USD 500 million through a bond privately placed with funds managed by Apollo Global Management, Bloomberg reported.
A firm controlled by Gautam Adani-led Adani Energy Solutions sold the 15-year private bonds with a rupee-equivalent all-inclusive cost of about 8.5%, and the company plans to use the proceeds to refinance existing dollar debt.
Indian issuers broadly have slowed dollar bond sales as a depreciating rupee has made such issuances more costly. The group plans to avoid public dollars bonds until prices recover and pending US matters are resolved.
Indonesia Roundup
Prabowo’s Free Meals Plan Draws Court Challenge by Civil Groups
Indonesian President Prabowo Subianto’s flagship free meals initiative is facing a second constitutional challenge from civil groups who are questioning the funding arrangements for the USD 20 billion initiative, Bloomberg reported.
The civil coalition known as MBG Watch has petitioned the Constitutional Court for a judicial review of the 2026 state budget law that underpins funding for the program.
MBG Watch is seeking to have parts of the law declared unconstitutional, arguing it gives overly broad discretion over public fund management. The group also says the legislation was drafted with insufficient transparency and public participation, and lacks clear fiscal safeguards.
Indonesia Lawmakers Grill Candidates for Top Regulatory Jobs After Market Turmoil
Indonesia's parliamentary commission will assess candidates for top jobs at the Financial Services Authority (OJK) after an equity market rout in January triggered a spate of resignations, Reuters reported via CNA.
Parliament is considering 10 candidates for a total of five vacancies at the agency. They include the current interim chair Friderica Widyasari Dewi and interim capital market supervisor Hasan Fawzi.
Iran War Has Airlines Reviewing Growth Plans as Fuel Surges
The war in Iran has caused airlines to weigh the implications on travel demand, fuel costs and navigating hostile skies, leading to a potential slowdown in new aircraft deals, Bloomberg reported.
Airlines in the Middle East are waiting to see when they might be able to return to regular operations and assess the financial impact of the war before they make final decisions.
Some Asian carriers, including Lion Air, Garuda Indonesia and AirAsia, are also reviewing timelines for large jet purchases.