It's not a trade that pushes Indiana over the top in the short-term or gives them more long-term assets. Furthermore, I believe the trade pushes them over the luxury tax. So they say no for sure.
I also don't think that the Twolves want to go into tank mode, as it is a strategy that has failed them in past. Additionally, The Twolves could probably get a better return for Pekovic than just KO and a Martin salary dump.