Malaysia's debt-laden Felda set to end ties with Rajawali

Plantation group seeking return of $677m as Indonesian firm did not meet deal conditions

Rajawali Group is controlled by businessman Peter Sondakh, the 14th richest Indonesian.
Rajawali Group is controlled by businessman Peter Sondakh, the 14th richest Indonesian.

Malaysia's political fallout is set to singe one of corporate Indonesia's biggest players.

The Federal Land Development Authority (Felda), Malaysia's largest state-owned plantation grouping, is proposing to walk away from its controversial partnership with the Jakarta-based Rajawali Group and demand the return of more than US$500 million ($677 million) it ploughed into a clutch of oil palm estate and sugar-related manufacturing assets in Indonesia in May 2017.

Please or to continue reading the full article.

Get unlimited access to all stories at $0.99/month

  • Latest headlines and exclusive stories
  • In-depth analyses and award-winning multimedia content
  • Get access to all with our no-contract promotional package at only $0.99/month for the first 3 months*

*Terms and conditions apply.

A version of this article appeared in the print edition of The Straits Times on February 07, 2019, with the headline 'Malaysia's debt-laden Felda set to end ties with Rajawali'. Subscribe