Robert Go, Jakarta – President Megawati Sukarnoputri's efforts to re-establish stability in the regions will involve a temporary pulling back of Indonesia's decentralisation programme, a move that threatens to spark protests from the country's 350-plus bupatis, or local administrators.

On her first foray into the regions as Indonesia's new leader two weeks ago, Ms Megawati warned bupatis against abusing the powers they assumed last January under two laws signed in 1999 during ex-president B.J. Habibie's term.

Last week, members of her new Cabinet began the public campaign designed to convince Indonesians of the need for some sort of serious revision of the country's regional autonomy laws.

"Autonomy should not get out of hand in a way that allows our regions to compete in an unhealthy way. There has to be coordination between neighbouring regions," said Home Affairs Minister Hari Sabarno, a former military man.

Energy and Resources Minister Purnomo Yusgiantoro said that the decentralisation programme scared off potential investors, especially those operating in the mining, gas and oil sectors. "If this continues, foreign investments will not come to Indonesia," he said.

Bureaucrats at the Ministry of Home Affairs began rewriting the decentralisation laws a few months ago. They say their amendments would shift, at least temporarily, powers from bupatis and put them with provincial governors.

Ms Megawati is said to be "very interested" in this amendment process. Her advisers are giving the ministry input as to how decentralisation should be made more gradual and "implemented progressively"."There is now too much freedom for regencies. The changes will focus on governors and clarify their roles in relation to bupatis," said the director general for regional development, Mr Cahyana Ahmadjayadi.

And Dr Sudarsono, who is in charge of the ministry's regional autonomy section, added: "We have seen tremendous discrepancies since the beginning of decentralisation.

"It has to be clear that governors oversee the bupatis and can settle disputes that arise in lower levels of government, at least for now." Dr Sudarsono and his peers say there is a need for more supervision of regents' activities.

But those who are in favour of decentralisation, such as Gadjah Mada University political scientist Dr Afan Gaffar, who is one of the original architects of the programme, have a different story. Dr Afan argues the real problem is a central government that is unwilling to let go of power, not out-of-control euphoria on the part of local governments.

"The basic problem is the tendency to re-centralise. All the ministries in Jakarta are hesitant to give away powers, because many officials still have interests at the local level and want to protect their sources of private revenue," he said.

Regardless of why decentralisation has stumbled, the current situation has indeed spooked potential investors. "Too much uncertainty or confusion about who is in charge, and of what, will keep investors out," said one foreign observer.