Tens of millions of people in the Southeast Asian nation are passionate football fans, but Indonesia's sole World Cup appearance came during Dutch rule in 1938 and the country has rarely threatened a return since independence in 1945.
Erick Thohir, who heads the Indonesia Football Association (PSSI), said Shin's work with the team had "ended" and his replacement, whom he declined to name, would arrive in Indonesia on Jan. 11.
"We need a leadership that implements strategies as agreed with the players, communicates better, and implements better programmes for our national team," Thohir told the press.
Indonesia are third in their World Cup group after six of 10 matches, one point behind Australia in the battle for the second automatic spot in the finals.
South Korean Shin took over as coach in 2019 and Thohir said he would be compensated for the remainder of his contract, which runs to 2027.