Why the confidence interval for proportion does not depend on the population size?

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The formula for a 95% confidence interval for proportion is

$\hat{p}\pm 1.96 \sqrt{p(1-p)}$

Suposing a sample of 200, calculating a proportion of 1.8%, the confidence interval is 1.67% - 1.93%. But, what if the population size is about 1 billion? Is this correct? I know that there is a finite population correction factor to small populations, but my thought is about big populations with very different sizes.

The formula can be used even to a a 1 million population also to a 1 billion population?