It means that this second edition of the event, due to take place between August 5 and 12, will be cancelled as there is no time to find an alternative host for an event that was set to see 1,500 athletes from 130 countries compete in 31 disciplines across 14 sports. 

A new host city for the ANOC General Assembly, which was due to take place alongside the World Beach Games, is expected to be announced later this year.

The Indonesian Olympic Committee (KOI) claimed that they were forced to pull out after the budget was not released by the Government in Jakarta, something which came as a "great surprise and extreme disappointment" to ANOC, they claimed.

"While there have been challenges in the Games preparations, as at any major multi-sport event, ANOC had been regularly assured by the KOI that solutions would be found and the Games would go ahead as planned," the umbrella organisation for the world's National Olympic Committees said in a statement.

"ANOC and the KOI met for weekly coordination meetings, as recently as last week, and at no point did the KOI indicate there were any issues that would lead to such an outcome."

KOI President Raja Sapta Oktohari admitted last week that they were still waiting for the Indonesian Ministry of Youth and Sports to confirm the funding for the event.

He told the local media that "hopefully if we can oversee all the processes properly it will be carried out".

Bali had been effectively awarded the Games at the ANOC General Assembly in Crete in October 2021, even though the country was banned at the time from hosting international events due to Indonesia's anti-doping organisation being suspended by the World Anti-Doping Agency (WADA). 

The ban was subsequently lifted by WADA in February 2022 and Bali, known as the "Land of the Gods" and located east of the island of Java, separated by the narrow Bali Strait, was confirmed as host by ANOC in June. 

A host city contract was signed during the ANOC General Assembly in Seoul last October.

They would have been the second hosts of the ANOC World Beach Games after Qatar hosted the first event in 2019. 

The build up to the event has been overshadowed by a row over whether Israel would be allowed to compete. 

Bali Governor Wayan Koster had regularly claimed Israel would not take part in the Games, something ANOC denied. 

The ANOC World Beach Games is the second major event that Indonesia, the most populous Muslim-majority country in the world, has lost this year.

In March, FIFA removed its men’s Under-20 World Cup from Indonesia over local objections to Israel taking part and Koster had refused to back down on his opposition to them featuring at the World Beach Games.