the absence of an integrated system of central places obstruct the emergence of a more geo graphically balanced pattern of development Most Third World governments acknowledge the difficulties in developing intermediate cities in peripheral regions as counter-magnets to the pri- mate city. and have instead sought to promote decentralisation of population and industry to sat- ellite towns located around the main urban centres. In 1997 twenty new towns had been approved or were under construction around Jakarta alone 2 Many Third World new towns. however, as a result of spatial proximity. tend to grow towards the major metropolitan centre. thereby defeating the aim of separate develop- ment. In addition, the promotion of a polycentric metropolitan region with satellite subcentres per- petuates the concentration of migration streams on the economically more dynamic capital region. Most fundamentally, decentralisation policies only indirectly address the causes of rural-urbam migration.