The withdrawal a month before the event has left no time to find a suitable host replacement, ANOC said in a statement posted on the event’s official Instagram account.
“There is no option but to cancel this year’s edition of the Games in Bali in August as well as the ANOC General Assembly,” it said.
“A decision will be taken in the coming weeks regarding a new location and dates”, ANOC added.
Bali’s local organising committee (LOC) said it decided to withdraw as host after its budget for the Games “was not released” by the Indonesian government, according to ANOC.
More than 100 Olympic member countries were due to take part in the second edition of the games, which includes beach and watersports like volleyball, surfing and aquathlon.