Nurdin, who was jailed in 2007 for misusing funds but continued to run the PSSI from his cell, is seeking a third term despite his premiership resulting in angry demonstrations in Jakarta and calls for his departure.
FIFA president Sepp Blatter had made the ruling to ban Nurdin from running in the March 26 election during a meeting in Zurich on Tuesday, the Jakarta Globe quoted Indonesian ambassador to Switzerland Joko Susilo as saying.
"Sepp Blatter said FIFA upholds the statutes that states a convict cannot lead a football organization," Joko said.
"If Nurdin is reelected, FIFA won't legitimise the election result. They want Indonesian football to be much better."
"The information from the ambassador must be untrue because the decision of FIFA's executive committee meeting [on March 3] has been received by the PSSI and it is impossible for FIFA to issue any decisions outside the meeting," he was quoted as telling local news broadcaster Metro TV.
Panigoro launched the rebel Indonesian Premier League football league in January in defiance of FIFA and was banned by the PSSI's electoral commission from running against Nurdin last month, sparking violent demonstrations.
