The Indonesian government signed a memorandum of understanding with a Swiss unit of US company Baxter International today to develop a human bird flu vaccine.
The deal has stirred controversy because it has been linked to an Indonesian decision not to share samples of its H5N1 bird flu virus with other laboratories.
Experts say sharing of samples is crucial as it allows specialists to study the makeup of the virus, and trace its evolution and the geographical spread of any particular strain. Samples are also used to prepare vaccines.
However, Kim C Bush president of the vaccine unit of Baxter Healthcare said at the signing ceremony the decision on samples was Indonesia's, not the company's, and was not tied to the deal.
Indonesia has the highest fatalities of any country in the world from the disease, accounting for 63 deaths out of the global total of 166 over the past four years.
Bird flu largely remains an animal disease, but can kill people who have close contact with infected fowl.
A draft news release said that under the deal, the health ministry's research and development agency would supply specimens of H5N1 and Baxter would provide technology to help develop a vaccine.
A health ministry spokeswoman said yesterday the vaccine aimed to prevent poultry-to-human infection. It is feared that a mutation of the virus could lead to human-to-human transmission sparking a pandemic.
An Indonesian official said earlier this month development of the vaccine was at a very early stage and not ready for commercial production.