JAKARTA – PT Pelangi Indah Canindo Tbk (PICO) has officially announced the cancellation of the Joint Operation Agreement (KSO) for the construction of the Lumina City apartments and commercial area in Tangerang.

PICO’s Corporate Secretary, Anton, revealed that on 7 May 2015, PICO, along with two non-affiliated parties, PT Indoserana Dwimakmur and Ko Dandy, had signed the KSO agreement to develop the Lumina City project in Tangerang, Banten.

However, on 6 March 2025, the parties agreed to cancel the KSO agreement. As a result of this cancellation, all land owned by PICO, which had previously been part of its capital contribution to the project, must be returned.

Previously, under the agreement, PICO contributed through a capital injection consisting of economic rights over a 21,370 m² plot of land valued at IDR 32 billion, giving the company a 37.21% ownership stake in the project.

Meanwhile, Ko Dandy contributed 7,055 m² of land worth IDR 11 billion, while PT Indoserana Dwimakmur provided 6,166 m² of land and additional capital of IDR 43 billion.

Furthermore, PICO is entitled to compensation for the land that has already been used in the construction of the apartments and sold. Additionally, the company is exempt from any losses arising from the KSO project.

"The company is released from all KSO obligations towards buyers and any other parties, including contractors and others, and the parties are obliged to find an investor or buyer to continue the construction of the Lumina City apartment tower in order to settle the KSO receivables owed to PICO," Anton said in an official statement on Tuesday (11/3).

Anton further emphasised that the cancellation of the KSO is not an affiliated transaction. (EF/ZH)