An Indonesian minister has warned regions not to go ahead with a threat to blockade oil and gasfields in their areas following dissatisfaction about the revenue split with the central government.

"The blockade move would only scare investors away. We must realise that it is the people of the regions who will suffer most," Finance Minister Budiono was quoted by Wednesday's Jakarta Post newspaper as saying.

The Association of Oil and Gas Producing Districts has threatened to block oil and gas operations in their areas after June 1 if the central government fails to give them a greater share of revenues.

"This is not the time to make threats," Budiono said, adding that disagreements should be settled at the negotiating table.

Under current regulations the central government gives 15 percent of its after-tax earnings from oil operations back to the regions and 30 percent from gas.

Of the 15 percent, six percent goes to the district containing the oilfield, six percent is shared by other districts in the same province and three percent goes to provincial authorities.

For gas, 12 percent goes to the producing district, another 12 percent to other districts and six percent to the province. The district association is demanding that districts receive a six percent share of the government's pre-tax earnings.

A sweeping autonomy law, which took effect in January last year, gave regions in the huge archipelago more powers including revenue-raising.