Robert Go – Decentralisation has resulted in dubious enterprises in Kutai Kartanegara and strange regulations in various parts of the archipelago.

Mr Syaukani's East Kalimantan regency is one of the country's richest regencies, with 470,000 people and a budget this year of around S$550 million. But his government has sunk a fair bit of that into a high-tech planetarium, a re-decoration project of Parliament, his office, and the Kumala island in the middle of the Mahakam River.

Mr Syaukani defends his record by pointing out that his government has provided free schooling for kids and two planned hospitals by this year. Yet decentralisation observers said more accountability is required in such regions.

Kumala, 3km long and only 72 ha, boasts a 100m skytower with a viewing area on top, fancy hotels, and a suspension bridge. An aquarium is devoted to the Mahakam Dolphin, a unique freshwater mammal. Visitors can also enjoy sporting facilities, restaurants and bungalows.

Mr Syaukani declined to open the books on Kumala, the same way he dodged questions on how much of Kutai's total budget remains in reserve at the end of each year. Inquiries by The Straits Times produced estimates of S$5 million each on the sky train and skytower, and around the same amount for reclamation projects to increase the island's total size. A local businessman admitted having made unofficial payments to Kumala accounts prior to starting a project there.

Experts said if decentralisation is to succeed in Indonesia, such behaviour must end. Finding themselves with more decision-making powers, many regions have decided to increase local revenues by getting creative: They've found new ways to tax people and businesses.

Dr David Ray, a trade adviser working with the Indonesian Ministry of Trade and Industry, said retribution charges have always existed in the country. Regional governments, in the age of decentralisation, simply added thousands of new such laws.

Here are some examples:

Clove and cinnamon tax: Last year, the provincial government of North Sulawesi imposed retribution charges on exporters of cloves and cinnamon.

Cow, goat, buffalo and horse taxes: In 2001, South Bengkulu regency in Sumatra Island levied a charge on farm animals taken beyond its borders, including on cows, buffaloes and horses. The local government took an extra step and required all such "exports" to go through a "medical examination". Of course, it charged extra fees for those services as well.

Chainsaw tax: The South Bengkulu regency also tried to enact retribution on chainsaws worth one million rupiah per item per year. The Home Affairs Ministry shot down this law, saying there is no reason for the local government to tax the use of chainsaws.