The 26-year-old singer is due to play in the country's capital Jakarta on June 3 as part of her Born This Way Ball tour, but police have declined to give her a licence to perform.
The "Born This Way" hitmaker will have to cancel the sold out concert after hard-liners and conservative lawmakers raised objection to Gaga's skimpy outfits and dance moves, reported Daily Mail.
The gig was the biggest show on the Asian leg of her world tour with more than 50,000 tickets being sold already.
"Lady Gaga insults all religions. Even Christians in Korea opposed her. She is promoting the worship of Satan," said Munarman, who is a spokesman for ultra-conservative Islamic Defenders Front.
The Islamic Defenders Front also pledged to intercept Gaga at the airport if she tried to enter the country over concerns she would undermine Indonesia's moral fibre.
It's not yet clear whether Gaga will be able to stage the concert in an alternative city.
Under 18s were banned from her sell-out Asian tour in South Korea after similar objections.
