"We have informed Indonesia that because they failed to provide a number of documented guarantees by the deadline, Indonesia is not any more a candidate for 2022," FIFA general secretary Jerome Valcke told reporters.
"They are out of this process."
The announcement leaves Australia, England, Japan, Mexico, Netherlands/Belgium, Russia, Spain/Portugal and the United States as candidates for the 2018 or 2022 finals while Qatar and South Korea are bidding for the finals in 2022 only.
Indonesia were regarded as rank outsiders to stage the tournament.
"When countries bid to host a World Cup, we ask for a number of government guarantees with regard to a number of things to make sure the tournament is organised is the best way possible as the International Olympic Committee also does," said Valcke.
"The deadline was December 2009 and we asked them many, many times but the government itself said their main concern was the people of the country and they would not support the bid committee."
An Indonesian government official told Reuters in February that the priority for the country should be on improving the standard of the lowly ranked team rather than hosting the World Cup.
Organisers of the surprise bid had pledged to build seven new stadiums with matches to be played in 11 major cities.
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