The 22-year-old defender was taken from the field on a stretcher shortly before half-time in the Dutch's 3-2 victory in Porto Alegre on Wednesday, which ultimately secured their place in the last 16 as Spain lost to Chile in the second game of the day.
Martins Indi was clattered by Australia midfielder Tim Cahill when making a clearance, and is expected to be unavailable for at least seven days.
"Bruno Martins Indi has sustained a concussion in the World Cup game against Australia," read a statement on the Netherlands' official website.
"The central defender left (the game) on the stroke of half-time on a stretcher after he landed on his head after a foul by Tim Cahill."
Robin van Persie will also miss the Chile encounter through suspension after he received his second booking of the tournament against Australia, but head coach Louis van Gaal believes Martins Indi's absence is a more pressing concern.
"In attack I have lots of options with (Memphis) Depay, (Jeremain) Lens and Dirk (Kuyt)," Van Gaal said.
"But in defence there are fewer options."
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