It is Just the Way it is in this song refers to the Kingdom of God. The Kingdom of God is not a physical kingdom. It is a transformation of heart and mind, a way of believing and living in preparation for eternity. If you are a believer in Jesus Christ, then your citizenship is no longer “of this world” – you are a citizen of heaven.
The kingdom of God refers to God’s reign on earth and consequently, in our hearts. It is about His kingship and our obedience to His rule.