President Joko Widodo tried to separate Indonesia's pro-Palestinian position from its obligations as a FIFA host, urging the public not to mix politics with sport and reminding officials that the country had gone through a lengthy bidding process. The appeal failed. On March 29, 2023, FIFA stripped Indonesia of the U-20 World Cup after the canceled draw and the refusal of a host province to accommodate Israel. FIFA also warned that further sanctions were possible and imposed a provisional restriction on PSSI's access to FIFA Forward development funds, threatening money used for football infrastructure and operations. PSSI chairman Erick Thohir described the punishment as closer to a 'yellow card' than a red card, suggesting that Indonesia had avoided the more severe outcome of suspension from international football. The tournament was transferred to Argentina, while Indonesia suffered intense domestic backlash: players Diego Michiels and Stefano Lilipaly publicly mocked or criticized the governors associated with the boycott, politicians blamed one another, and analysts argued that the episode damaged the electoral prospects of governor Ganjar Pranowo and his political allies. Indonesian officials estimated potential tourism and tax losses at roughly 3.7 trillion rupiah. In a later effort to repair relations with FIFA, Erick Thohir lobbied FIFA president Gianni Infantino, and Indonesia was eventually awarded the 2023 FIFA U-17 World Cup after Peru withdrew as host.
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