FIFA president Gianni Infantino announced the ban had ended at a congress on Friday, after the Indonesian Football Association (PSSI) agreed to remove the offending decree.
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FIFA lifts Indonesia suspension
Indonesia are free to return playing international football after FIFA lifted the suspension handed down for government interference almost a year ago.
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In May last year, a row broke out between the PSSI and Indonesia's Sports and Youth Ministry over which teams were eligible to play in the Indonesian Super League (ISL) - leading to the domestic football season being cancelled.
FIFA set a deadline of May 29, 2015 for the dispute to be resolved and acted to suspend Indonesia from international competition, less than a fortnight before the country was scheduled to play their next World Cup qualifier against Taiwan.
It was not all good news at the 66th FIFA Congress in Mexico City, with Infantino confirming the suspensions of Kuwait and Benin.
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Kuwait Football Association (KFA) had been banned by FIFA last October for government interference, while the Benin Football Association (FBF) was suspended due to a recent injunction by a local judicial court which prevented a presidential election from taking place.
"I'm very sad to be here and have to propose to you that we suspend two associations," said Infantino.
"On the other hand, we need to protect our associations from government interference, it is one of our major tasks."
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