East and Central Java administrations have announced plans to develop their northern and southern border areas to improve domestic and foreign investment, an official said Thursday.

East Java Investment Board chief Hary Soegiri said the investment clusters were expected to contribute around 20 percent of the provinces' investment realization this year.

"We held a meeting with Central Java administration in Yogyakarta to develop the clusters for investment," Hary said.

The clusters would be developed in four regencies in the north (Blora and Rembang in Central Java and Bojonegoro and Tuban in East Java) and six regencies in the south (Karanganyar, Wonogiri, Sragen in Central Java and Pacitan, Ngawi, and Ponorogo in East Java).

The clusters would be developed in various sectors including mining, forestry, seaports, agriculture and tourism, Hary said.

According to the East Java Investment Board, last year the province had attracted foreign investment worth a total of US$2.5 billion in 93 projects and domestic investment worth Rp 20 trillion ($2 billion) in 35 projects.

As of May this year, East Java had recorded foreign investment of US$150 million in 40 projects and domestic investment of Rp 1.4 trillion in 15 projects.

East Java Expert Council economic and monetary coordinator Soebagyo said the development of clusters should include feasibility studies and supporting infrastructure such as electricity and water.

"The administrations should provide infrastructure to attract investors," Soebagyo said.

East Java administration also plans to development a southern highway worth Rp 4 trillion, connecting eight regencies (Pacitan, Trenggalek, Tulungagung, Blitar, Malang, Lumajang, Jember and Banyuwangi).

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