
Wan Muhammad Arif Shaharuddin-Roy King, ranked world No 65, lost 18-21, 21-17, 19-21 in 52 minutes in the Super 300 match in Madrid.
After losing the first game, the Malaysians fought back to win the second game and matched their opponents until 19-19 in the decider.
The Indonesian pair, ranked world No 34, clinched two straight points to seal the title and their third straight victory over the Malaysians.
In the men’s singles final, Singapore’s former world champion Loh Kean Yew beat Toma Junior Popov of France 21-11, 15-21, 22-20 while Ratchanok Intanon thrashed Supanida Katethong 21-12, 21-9 in an all-Thailand women’s singles final.
Indonesia’s Rinov Rivaldy-Pitha Haningtyas Mentari overcame China’s Cheng Xing-Zhang Chi 17-21, 21-12, 21-13 in the mixed doubles final while Japan’s Rin Iwanaga-Kie Nakanishi beat Indonesia’s Febriana Dwipuji Kusuma-Amallia Cahaya Pratiwi 12-21, 21-8, 21-16 in the women’s doubles.