Indonesia is out of the race to host the 2022 World Cup.
FIFA said on Friday that Indonesian bid leaders missed a deadline to produce the required government guarantees to back the project.
FIFA secretary general Jerome Valcke says "Indonesia is not any more a candidate for 2022."
Indonesia was always considered the outsider of the 11 original candidates which applied to host the tournament in 2018 or 2022.
Indonesia hosted the 2007 Asian Cup, but would have needed to invest billions of dollars building and upgrading stadiums to provide the minimum 10 venues needed to host the 32-team World Cup.
Indonesia originally bid to host either tournament, then withdrew from the 2018 contest to focus on 2022.
Valcke said the Indonesian government had other priorities for state funds.
"Their main concern is to develop the country and they will not support the bid committee as much as FIFA requested," he said.
Indonesia is the second bidder to drop out since the March 2009 entry deadline. Mexico withdrew its candidacy last year.
Australia, England, Japan, Russia, the United States, plus the Spain-Portugal and Netherlands-Belgium joint bids, have applied to host either the 2018 or 2022 World Cup. Qatar and South Korea are bidding for 2022 only.
The nine remaining candidates must deliver their bid books detailing how they would organise the event to FIFA headquarters on May 14.
FIFA's 24-member ruling executive will choose the two winning bids on December 2.