Robert Go, Jakarta – Indonesia's big-bang decentralisation programme took effect eight months ago and gave wide-ranging powers over taxation, education and exploitation of resources to the country's bupatis.

While most analysts argued the need for decentralisation, many have described the current programme as "too much, too soon". Jakarta was trying to distribute power locally, they said, when there was a distinct lack of authority at central level.

A lack of safeguards against corruption in the regions and "creative taxation" have been cited as two major problems. Bupatis have imposed extra levies on road use, advertising and even burial services, often in violation of existing regulations or contracts with private investors, for example.

Inconsistent regulations between neighbouring regencies could also pose problems on investment and trade-related issues. The challenge before Ms Megawati and her nationalistic team is to establish a workable decentralisation hierarchy that will not anger local officials and their people too much.