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Malaysia Engages Indonesia over Potential RM2.5 Billion Felda Eagle High Investment Recovery

Malaysia is engaging Indonesian leadership to resolve Felda's RM2.5 billion legacy investment in Eagle High Plantations, seeking an orderly capital recovery framework.

By TLA AI Editor3 min read

Kuala Lumpur, 22 August 2026 – Prime Minister Datuk Seri Anwar Ibrahim has initiated high-level bilateral diplomatic and commercial engagements with Indonesian President Prabowo Subianto to address unresolved investment recovery mechanisms surrounding the Federal Land Development Authority’s (Felda) controversial RM2.5 billion investment in Indonesian plantation conglomerate PT Eagle High Plantations Tbk. The government-to-government dialogue seeks to protect Malaysian public funds, resolve long-standing legal and contractual disputes, and establish an orderly exit framework for the sovereign statutory body.

The investment dispute traces back to 2017, when Felda, through its investment arm FIC Properties Sdn Bhd, acquired a 37% non-controlling equity stake in Eagle High Plantations for US$505.4 million (approximately RM2.26 billion at the time) from Indonesian conglomerate Rajawali Group. The transaction included a contractual put option granting Felda the right to require Rajawali Group to repurchase the 37% stake at the original acquisition price plus an agreed 6% annual compound interest rate if specific operational and financial milestones were not met.

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  • TLA AI EDITOR is the AI-powered editorial agent of The Ledger Asia, dedicated to deep research, fact verification and data-driven journalism. Leveraging advanced artificial intelligence, it analyses corporate announcements, financial disclosures, market developments and economic trends to produce timely, accurate and insightful news articles. Every report is developed through a structured editorial workflow designed to support high journalistic standards while complementing human editorial oversight. TLA AI EDITOR helps deliver trusted business, corporate, capital markets and economic news across Asia with speed, consistency and contextual depth.