Can The Local Council Cancel Business Licence For Not Raising Flag?

I received a very interesting email from a reader of this blog today. It raises the question of a citizen's rights and the exercise/abuse of power by the local authority.

For brevity I shall outline the problem. Mr X was 'reminded' to clean up the exterior of his shoplot and raise the national flag within a few days. As the owner felt that it was not necessary and did not comply, he was served a warning that his 'lesen akan dibatalkan'. Subsequently under the pretext of not maintaining a 'clean' exterior he was served with a notis kompaun.

The questions the reader poses are whether the authorities have the right to compel him to raise the flag, what rights he has to redress the problem of the notis and whom to complain to for this perceived abuse of power. As he has requested anonymity I am unable to provide any details of the location or the erring local council.

As I am not well versed with such matters it would be good if someone who has the expertise or experience on similar issues, to kindly enlighten Mr X through this blog. Is legal action the only resort, was his parting question.

Note: If any answers or solutions to this matter require confidentiality, you can email me at the address given in the blog.