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

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

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

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. Learn more about ST PREMIUM.

Enjoy unlimited access to ST's best work

  • Exclusive stories and features on multiple devices
  • In-depth analyses and opinion pieces
  • ePaper and award-winning multimedia content
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'. Print Edition | Subscribe