"Freeport will divest 51 percent of its shares to Indonesia. We have to finish the process in 2019," Luhut in an "Afternoon Tea" with reporters here on Wednesday.
Currently discussion is on split of the 51 percent stake between the central government and regional administrations, he said.
Under the regulation the shares will be offered to the central government and the central government will make an offer to regional administrations and any shares not bought by the government or regional administrations would be offered to state companies and Indonesian private companies.
Luhut said regional administrations may have a 5-10 percentage point of the 51 percent stake.
The price would be based on the market price with appraisers to be named by Freeport and the government.
"There would be independent valuers to be named by both sides, the government and Freeport. The price of reserves is not to be appraised," he said.
Luhut said with 51 percent stake in hand Indonesia will control the company. Currently the government has only a 9.36 percent stake in Freeport Indonesia.
The government and PT Freeport Indonesia have succeeded in ironing out dispute over Freeport contract, which will expire in 2021. Freeport agreed to divest shares up to 51 percent, build smelter for copper concentrate in five years and changed its contract from contract of work with special mining permit (IUPK). In exchange the government allows Freeport to exports copper concentrate until the smelter is operational
Under IUPK, PT Freeport Indonesia will be given contract extension of 2x10 years until 2041.
The government and PT Freeport Indonesia will cooperate in preparing document for the agreement.(*)