In 1963 the establishment of Malaysia was announced, incorporating Federation of Malaya and the former British colonial possessions in northern Borneo. Indonesia rejected the formation as a neo-colonialist project of the United Kingdom. The Philippines also rejected the formation due to its claim to Sabah. PKI once again sought to exploit the issue to strengthen its political position. They organised mass demonstrations in Jakarta, during which the British Embassy was burned to the ground. On 17 September, a day after Malaysia was established, Indonesia broke off diplomatic relations with Malaysia, and shortly after, the low level conflict known as "konfrontasi" (confrontation) was commenced.