Jakarta – Indonesia's Home Affairs Minister Hari Sabarno on Monday urged local authorities to revoke dozens of regional regulations deemed to hinder the flow of goods and capital.

The finance ministry has proposed to the home affairs ministry that it scrap 71 regulations. "We do not want the government to use the old paradigm, using power to act at will. If it [the decisions] can be taken in the regions, it would be much better," Sabarno said.

He urged provincial and district administrations to consider the interests of the nation and not just their own areas. Overlapping levies by regions on goods, services and capital would make products unecessarily expensive, Sabarno was quoted by the Detikcom online news service as saying.

A senior finance ministry official said last week the proposal to scrap the regulations was in line with a demand from the International Monetary Fund (IMF), which is coordinating a five-billion-dollar aid package for the country.

The IMF has singled out some 100 regulations which it says overlap with regulations issued by other regions or by the central government and which hamper investment and trade.

An autonomy law which took effect in January gave regions more powers including revenue-raising. Critics have said its hurried application has given rise to many problems including overlapping authorities and rivalries.

Investors have complained of local regulations and taxes which run counter to central government policies.