FIFA, soccer’s international governing body, has stripped Indonesia of hosting rights for the upcoming Under-20 World Cup.

The organization made the decision after the Football Association of Indonesia (PSSI) had canceled the draw for the tournament last Friday (March 24) because Bali's governor Wayan Koster refused to host Israel's team.

Koster also called for Israel to be banned from the competition. 

Indonesia, a predominantly Muslim country, does not have any formal diplomatic ties with Israel, and recent protests have been held in its capital Jakarta in support of Palestine demanding that Israel not be allowed to compete in the tournament.

The U20 World Cup is due to take place from May 20 to June 11, giving FIFA less than two months to find a new host.

Indonesia was awarded hosting rights to the 24-team tournament in 2019 before Israel qualified for the tournament.

FIFA said its decision had been taken following a meeting between its president Gianni Infantino and PSSI chairman Erick Thohir.

In a statement, the governing body stated: “FIFA has decided, due to the current circumstances, to remove Indonesia as the host of the FIFA U-20 World Cup 2023.

“A new host will be announced as soon as possible, with the dates of the tournament currently remaining unchanged. Potential sanctions against the PSSI may also be decided at a later stage.”

The news has not gone down well with PSSI officials and Indonesian players who blamed politicians for the setback.

PSSI said losing hosting rights will harm the national side's chance of taking part in other FIFA tournaments, while the economic losses would amount to millions of dollars.

Just prior to FIFA’s announcement, PSSI executive committee member Arya Sinulingga said: "If we make political requirements in sports, it'll always be like this. We will be exiled from the football ecosystem.

"It's very tough for all of us. We're headed into a calamity in sports. We have to separate football or sports and politics."

As hosts, Indonesia had automatically qualified for the tournament, but it is unclear if the nation will be able to participate following FIFA's decision.

The U20 World Cup was last held in 2019 in Poland as the 2021 edition, which Indonesia was originally scheduled to host, was canceled due to the Covid-19 pandemic.