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POSA stops renovation Lombok City Center

19 February 2020 11:54

JAKARTA - PT Bliss Properti Indonesia Tbk (POSA) has stopped the Lombok City Center (LCC) renovation process related to the legal certainty of using the shopping centre land with PT Patut Patuh Patju (PPP). Initially, LCC operations would be carried out in the third quarter of 2019.

As quoted from the disclosure of company information, Tuesday (18/2), PPP as the LCC landowner has not provided certainty in the Joint Operation Cooperation (KSO) with POSA. Therefore, it delayed the completion of the shopping centre renovation until a legal agreement was reached.

As for now, the PPP is facing a legal case related to the use of compensation funds for the acquisition of buildings belonging to the West Lombok Agriculture Office, which is in the LCC area. In addition, PPP is also suspected to have not used the capital investment funds of the West Lombok Regency government.

The hampered operational of the LLC adds to the barriers POSA to generate revenue from the planned two shopping centre projects this year. Jambi City Center, a shopping centre construction project in Jambi, has also been delayed in its operations until the third quarter of 2020 due to delays in the construction of the fit-out anchor tenant. (LK)

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