JAKARTA OVERTAKES TOKYO AS WORLD’S LARGEST CITY IN UN REPORT

The demographic landscape of global urbanisation has shifted significantly, with the United Nations formally designating Jakarta as the most populous metropolitan area on Earth. On 26 November 2025, the UN Department of Economic and Social Affairs released its World Urbanisation Prospects revision, confirming that the Indonesian capital has surpassed Tokyo, which had held the top position for nearly seven decades. This transition highlights a broader trend of rapid urban growth in South and Southeast Asia, as Tokyo falls to third place behind the capital of Bangladesh, Dhaka.

Details Of The Demographic Transition

End Of The Tokyo Era

According to the new data released by the United Nations, the extended metropolitan area of Jakarta has surged to the top of the global population rankings. This marks the first time since 1955 that the Japanese capital has not held the title of the world’s largest city. The shift is attributed to divergent demographic trajectories; while Jakarta continues to expand due to migration and natural growth, Tokyo is experiencing a population decline driven by an ageing society and low birth rates.

The reshuffling of the top three megacities illustrates the rapid urban expansion occurring in developing Asian nations. Dhaka, the capital of Bangladesh, has also overtaken Tokyo, securing the second position in the global rankings. This realignment underscores that the centres of extreme urban density have firmly moved away from East Asia toward Southeast and South Asia.

Infrastructure And Environmental Strain

The ascent of Jakarta to the status of the world’s largest city brings into sharp focus the severe developmental challenges facing the metropolis. The city is defined by stark contrasts, where modern skyscrapers stand in close proximity to extensive slums. The rapid population growth has exacerbated existing issues regarding inequality and environmental degradation.

Reports indicate that air pollution remains a critical issue for the city’s millions of residents, alongside chronic traffic congestion that hampers economic productivity. Furthermore, the city faces an existential threat from land subsidence; significant portions of Jakarta are sinking due to excessive groundwater extraction, a situation that complicates its ability to sustain such a massive population density. These environmental pressures are occurring precisely as the city reaches its demographic peak.

Global Urbanisation Context

The World Urbanisation Prospects 2025 report by the United Nations highlights that this shift is part of a global pattern where future urban growth is projected to be concentrated in Asia and Africa. The data suggests that managing these new megacities will require substantial shifts in urban planning and resource management. The rise of Jakarta and Dhaka reflects the immense pressure on infrastructure in the Global South, where the pace of human settlement frequently outstrips the development of adequate housing and services.

Concluding Forecast

The designation of Jakarta as the world’s largest city creates a complex paradox for the Indonesian state, as it coincides with the government’s active efforts to move the administrative capital to Nusantara.

• Dual-City Dynamics: The demographic milestone will likely cement Jakarta’s role as the unparalleled commercial and financial hub of the nation, even as political functions migrate to Nusantara. This separation of powers may allow the local government of Jakarta to focus exclusively on urban regeneration without the burden of hosting the central government, potentially leading to more targeted infrastructure interventions.
• Climate Adaptation Urgency: The title of “world’s largest city” will increase international scrutiny on Jakarta’s environmental crisis. The government will likely face intensified pressure to accelerate the construction of the giant sea wall and enforce stricter bans on groundwater extraction. Failure to address the sinking rate could turn the world’s most populous city into a humanitarian crisis zone within the next decade - similar to the situation in Tehran.
• Regional Economic Shifts: The rise of Jakarta and Dhaka to the top two spots signals a definitive shift in the economic gravity of Asia. Investors and multinational corporations may increasingly view these metropolises not just as production bases, but as the world’s largest consumer markets, necessitating a recalibration of market entry strategies to address the specific needs of these high-density, high-inequality urban environments.

The further expansion of megacities underlines the importance of physical reach even in times of digital economies. However, this also means that policies within the field of urban planning need to adapt and move beyond incremental adaptation and focus on strategic restructuring of the city-countryside balance.