A show by pop diva Lady Gaga in Indonesia has been cancelled after religious conservatives threatened "chaos" if she entered the world's most populous Muslim-majority nation.

"Lady Gaga's management has considered the situation minute to minute, and with threats if the concert goes ahead, Lady Gaga's side is calling off the concert," Minola Sebayang, a lawyer for promoters Big Daddy, told reporters on Sunday.

"This is not only about Lady Gaga's security, but extends to those who will be watching her," he added.

Earlier this month Jakarta police refused approval for the show after the hardline Islamic Defenders Front threatened violence if Lady Gaga performed, calling her a "devil's messenger" who wears only a "bra and panties" on stage.

But Indonesian national police later said they were still discussing the matter and organisers said it would go ahead on June 3.

Toned down

The promoters had indicated that a deal was being hammered out to tone down the star's racy show, but her own management vowed no compromise to appease religious conservatives or censors.

Big Daddy president director Michael Rusli said it was "unfortunate" that the show had been called off.

"For the past few days we have communicated with the government and Lady Gaga's side. The government has given support, but this is not about the permit," he said. "The cancellation is really due to concerns over security."

Hundreds of members of Muslim groups in Jakarta held a protest against the concert in the city on Friday.

The protesters gathered in front of Jakarta's justice, political and human rights ministry, holding placards, posters and flags.

"We cannot accept this, we are the Muslim majority and we must reject this," protest leader Ayub Naji Bin Said told Reuters news agency.

Indonesia, a secular state, has the world's largest population of Muslims as well as significant minorities of Christians, Buddhists and Hindus.