He has been given the responsibility of leading the team to their inaugural World Cup appearance since gaining independence.
The 48-year-old ex-striker will take charge of a squad primarily composed of players who were born in the Netherlands and have since become naturalized citizens of the Southeast Asian country.
“The Dutch football legend has signed a two-year contract from 2025 to 2027 with an option for an extension,” Indonesia’s football association, the PSSI, said in a statement.
Kluivert, whose coaching career has yet to reach the heights of his illustrious playing days, is set to arrive in Indonesia on Saturday, with a public introduction planned for the following day.
The Dutchman has been frequently mentioned as a candidate for the position after Indonesia's controversial decision to dismiss South Korean coach Shin Tae-yong on Monday.
Shin had led Indonesia, currently ranked 127th by FIFA, to the crucial third round of Asian qualifying for the 2026 World Cup in North America. Indonesia's only World Cup appearance came in 1938 during Dutch colonial rule, prior to gaining independence in 1945.
They are actively competing for a spot in the 2026 tournament, currently sitting third in their qualifying group with one win and three draws from six matches.
The top two teams will qualify directly for North America, while the third and fourth places will enter an additional qualifying round.
Indonesia's next qualifying match is a critical away game in March against Australia, who are currently second in Asian qualifying Group C, just one point ahead. Japan leads the group by a significant margin.
An official from the Indonesian football association acknowledged to AFP that Kluivert's hiring has not been well-received by fans, who continue to support Shin.
However, the official, who requested anonymity, noted, “Shin faced communication challenges with the European players.
That’s why we opted for a coach from the Netherlands.”
Kluivert, born in Amsterdam, concluded his playing career in 2008 after a remarkable tenure that began at Ajax, where he secured a Champions League title, followed by stints at AC Milan and Barcelona.
He was regarded as one of the most formidable forwards in Europe, netting 123 goals in six seasons with Barcelona and contributing 40 goals in 79 appearances for the Dutch national team.
However, his coaching career has not been as distinguished.
His most recent position was with Adana Demirspor in Turkey for five months in 2023, and prior to that, he served as the caretaker manager for Curacao in 2021.
Much of his coaching experience has been as an assistant, particularly under fellow former Ajax and Netherlands player Clarence Seedorf.
He was also number two to Louis van Gaal with the Dutch national side in 2012-2014.