The Indonesian government intends to build ten new cities, Andrinof Chaniago, National Development Planning Agency Minister, announced on March 24.

The first new urban area will be built in Tanjung Selor, North Kalimantan province.

According to the minister, the government completed a study to transform the administrative status of Tanjung Selor from a district to the capital city of North Kalimantan, Indonesia’s youngest province, which borders Malaysia. With an area of 1,227sq.m, Tanjung Selor has a population of around 42,000.

According to the minister, the government allocated funds for the new cities development in the revised 2015 state budget.

However, the locations of the nine other cities have yet to be revealed.

Minister Andrinof said the development of new cities will be prioritised outside the island of Java , Indonesia’s most populous island, as part of the government’s efforts to push for a more balanced distribution of economic growth and to achieve prosperity targets such as poverty and unemployment reduction.

Java's economic contribution has always dominated the national gross domestic product (GDP). In 2013, Java contributed 58 percent to the GDP, followed by Sumatra, 23.8 percent; Kalimantan, 9.6 percent; Sulawesi, 4.8 percent; Maluku-Papua, 2.2 percent; and Bali-Nusa Tenggara, 2.8 percent.-VNA