Regulatory Framework of Material Transfer Agreement (MTA) Under Indonesian Laws

Abstract

The MTA provides for a contractual agreement between a provider and recipient of the material which content the rights and obligations of all parties, including third parties. In international law, the Convention on Biological Diversity (CBD) and FAO International Treaty on Plant Genetic Resources for Food and Agriculture (ITPRFA) provides mandate to Contracting Parties have to enact laws and adopt policies regarding the MTA for negotiation between the recipient and provider of access to genetic resources based on profit-sharing agreement. Regulation MTA in Indonesia is covered in the Regulation of the Minister of Agriculture under Regulation of the Minister of Agriculture No. 15/Permentan/OT.140/3/2009 on Guidelines for Preparation of Material Transfer Agreement and Regulation of the Minister of Health No. 657/Menkes/Per/VIII/2009 on Delivery and Use of Clinical Specimens, Biological Materials and Content the information. This article aims to examine the provisions of MTA under international laws and Indonesian law, it will analyze to what extent MTA set out in Regulation of the Indonesian Minister of Agriculture No. 15/Permentan/OT.140/3/2009 and Indonesian Minister of Health No. 657/Menkes/Per/VIII/2009. Then this study will also give suggestion for additional terms due to any weaknesses of MTA regulations in Indonesia. MTA regulations provides many benefits for Indonesia as a state provider, especially in terms of the protection of intellectual property rights. Provider can cooperate to research and development on food, agriculture and health, with domestic or foreign researcher, providers gain benefit sharing on the sale or lisence of products produced from the contracted material. For local communities also gain profit from its commercialization of the collection or invention of material obtained in the region owned by local communities. Yet, the MTA regulations is considered can inhibit the development of research and invention, costly. MTA provision that allow the recipient to distribute the genetic material and its derivates to other parties raises possibility violation by the recipient and also will arise conflict on the third party. According to MTA regulations, the provider difficult to monitor and control the implementation of the agreement. Thus, It needs to be more detailed arrangements regarding intellectual property protection to limit the use of the transferred material, also need to be set separated on benefit sharing when both parties negotiate of MTA.