In Indonesian law, the term "city" is generally defined as the second-level administrative subdivision of the Republic of Indonesia, an equivalent to regency. The difference between a city and a regency is that a city has non-agricultural economic activities and a dense urban population, while a regency comprises predominantly rural areas and is larger in area than a city. However, Indonesia historically had several classifications of cities.

A regency, sometimes incorrectly referred to as a district, is an administrative division of Indonesia, directly under a province and on the same level with city (kota). Regencies are divided into districts.