Jakarta – Thousands of people gathered on the streets here yesterday to celebrate the 475th anniversary of Indonesia's capital – one of Asia's most crowded and polluted cities.

"I love and hate Jakarta," said Ms Siti Maimunah, a vendor selling coconut ice cream to the celebrating crowd yesterday, the first day of a two-day celebration. "It's where the jobs are but it's so hard to live here," she said, echoing the sentiment of many of the city's residents.

Jakarta, which is on Indonesia's main island of Java, is home to more than 10 million people who suffer through the city's traffic-clogged roads, poor public transportation, polluted air and open sewers every day.

The city's population includes the poor from all over the archipelago, who flock to the capital for jobs and a better life, only to be evicted from their makeshift homes by the city administration.

In January and February, Jakartans had to endure more hardship as torrential rains triggered floods that left areas of the city under water for weeks.

Despite their troubles, the thousands who turned out yesterday were in a celebratory mood. Dozens of parties were being planned across the city.

One of the city's most beloved landmarks – a fountain near the site of many of the protests in 1998 that led to the fall of former president Suharto – was reopened last night after a 14- billion-rupiah renovation.

Meanwhile, hundreds of gaily decorated cars and motorcycles tooted their horns during a two-hour-long parade that ended in the city centre.

Jakarta was founded in the early 14th century and became one of the biggest international seaports in Asia. It was called Batavia during Indonesia's four centuries of Dutch rule.