The Indonesian government has for the first time held the country's Independence Day ceremony in its planned new capital city, Nusantara.

In 2022, the government decided to relocate the capital from Jakarta to the site on Kalimantan island, more than 1,500 kilometers away. Officials say the move is aimed at easing traffic congestion and the concentration of people and jobs in Jakarta.

Construction is underway at the site of the planned new capital, developing about 250,000 hectares of forested land.

On Saturday, President Joko Widodo, a number of cabinet ministers, government officials and representatives of local residents attended the ceremony.

They watched the national flag being raised in a square in front of the new presidential palace. Soldiers and police marched in a parade.

A company employee in her 30s said she hopes for an early completion of the project and for a lot of investment.

The goal is to complete the relocation by 2045. President Joko says around 15 percent of the work has been completed.

The government plans to have some of its employees move to the planned capital starting as early as October.

It is estimated the relocation will cost about 33 billion dollars. The government says 80 percent of the cost will be covered by private-sector investment and other means.

But some observers are questioning whether the government will be able to procure the necessary amount of money for the project.