The central government through the Minister of Home Affairs has nullified 3.143 local regulations that made slow economic growth, and investment. The nullification was aimed at making easy of business and improving the national competitiveness. There are three aims of this research: to understand the current mechanism of nullification of local regulation, analyze the problems of nullification of local regulation, and to propose a better mechanism of nullification of local regulation. The research is normative legal research which uses juridical and historical approaches. The results of research show that there are two mechanisms of nullification of local regulation. First, it was done through the Ministry of Home Affairs called the executive review while the second was conducted through the Supreme Court which is called judicial review. The issues of nullification of local regulation have resulted legal vacuum in local government, unsynchronization of Indonesian legislation, and the decreasing of economic growth in the region after nullification of local regulation.