FIFA, Football Association of Indonesia (PSSI), and 2023 FIFA U-20 World Cup / 2020s
President Joko Widodo tried to defuse the confrontation on March 28, 2023, reaffirming Indonesia's support for Palestine while insisting that the country honor its contractual obligations to FIFA and keep politics separate from the tournament. The appeal failed. On March 29, FIFA announced that Indonesia had been removed as host because of the 'current circumstances,' effectively concluding that the host nation's opposition to a qualified participant made it impossible to stage the event under FIFA rules. The tournament was transferred to Argentina, and Israel coach Ofir Haim welcomed the decision, saying his team would attend 'to represent Israel with honor.' FIFA also sanctioned PSSI by temporarily restricting access to FIFA Forward development funds, while PSSI president Erick Thohir warned that the organization had narrowly avoided a more severe suspension from international football, describing the punishment as a 'yellow card' rather than a red one. The cancellation triggered furious backlash in Indonesia: players such as Diego Michiels and Stefano Lilipaly publicly mocked or criticized the governors associated with the boycott, while political opponents blamed the decision for damaging Indonesia's reputation, football development, and electoral prospects. The government later cited an estimated loss of roughly 3.7 trillion rupiah in potential tourism and tax revenue. Indonesia eventually regained a major FIFA hosting role when it took over the 2023 FIFA U-17 World Cup after Peru withdrew, but the U-20 episode remained a lasting example of diplomatic policy colliding with FIFA's insistence that qualified teams be allowed to participate.
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