LADY Gaga has cancelled her sold-out show in Indonesia after Islamist hard-liners threatened violence, claiming her sexy clothes and provocative dance moves would corrupt the nation's youth.

The controversy was a blow to the predominantly Muslim country's reputation for combining free speech and democracy with a mostly moderate brand of the faith.

The Born This Way Ball concert has been on-again, off-again from the start, but it was final on Sunday, said Minola Sebayang, a lawyer for Big Daddy, promoter of the June 3 show.

"It's unfortunate," he said. "But with threats if the concert goes ahead, Lady Gaga's side is calling it off. This is not only about Lady Gaga's security, but extends to those who will be watching her."

A small extremist fringe in the secular nation of 240 million has become more vocal - and violent - in recent years, attacking Christians, members of other religious minorities and anyone else deemed immoral.

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