Jakarta – An avalanche of red tape caused by Indonesia's attempts to devolve power to the local authorities has left business leaders fuming. According to the Indonesian Chamber of Commerce and Industry (Kadin), regional administrations have issued 1,006 new regulations since being handed extended powers by a decentralisation law that took effect on January 1.

"There are so many regional regulations that are hindering, some are even senseless," Kadin chairman Aburizal Bakrie said, according to the Bisnis Indonesia daily. "Kadin demands that these regulations which are hindering business be revoked," he said after meeting President Megawati Sukarnoputri.

The decentralisation law allows district and municipal administrations to raise their own revenues. Mr Aburizal said this had led to a flurry of new taxes on businesses. The executive director of the Indonesian Mining Association, Mr Paul Courtier, said companies in the mining sector frequently had to deal with overlapping levies imposed by different regions.