The Indonesian government said Saturday it had suspended the country's football association and would set up a replacement, a dramatic escalation of a row that has seen the domestic league halted.

There was no immediate reaction from the association, the PSSI, which was holding a congress on Saturday. As the row escalated earlier this month, world governing body FIFA threatened sanctions against Jakarta if it failed to stop interfering with the association.

The dispute erupted when the PSSI halted the Indonesian Super League earlier this month after a disagreement with an agency of the national sports ministry.

The agency insisted that two clubs should not be allowed to participate due to ownership issues but the PSSI disagreed, and suspended the league.

Sports Minister Imam Nahrawi signed a letter on Friday, saying the government no longer recognised any sports activities conducted by PSSI or decisions made by the body.

The letter said a transition team would be established soon to handle football matters until a "more competent PSSI" could be set up.

Sports ministry spokesman Gatot Dewa Broto confirmed the move to AFP Saturday, saying the decision had been taken as the PSSI had failed to respond to repeated government warnings.

"We don't recognise the PSSI as an institution any more," he said.

"The government would like to establish a so-called transition team as soon as possible."

As the row simmered earlier this month but before the league was suspended, FIFA Secretary General Jerome Valcke wrote to the Indonesian government, warning them to let the PSSI manage its own affairs or face possible sanctions.

FIFA previously threatened to ban Indonesia from world soccer over a row between the PSSI and a rival association, with both sides running separate leagues. The two sides eventually agreed to come together, avoiding a ban.

Weak management, corruption, poor security at games, and high-profile cases of foreign players dying after going unpaid have also cast a shadow over football in the world's fourth most populous country.