Indonesian President Susilo Bambang Yudhoyono and his wife Ani Yudhoyono attend celebrations for Indonesia's 69th Independence Day at the Presidential Palace in Jakarta Reuters

The president of Indonesia has said that the barbaric actions of Isis (now known as the Islamic State) are "embarrassing" to the religion and called upon Islamic leaders around the world to unite to defeat Islamic extremism.

Susilo Bambang Yudhoyono, the leader of the world's most popolous Muslim-majority nation, said that the group were not only "embarrassing" but "humiliating" Muslims around the world.

"It is shocking. It is becoming out of control," said Yudhoyono in an interview with The Australian.

"We do not tolerate it, we forbid Isis in Indonesia," he added. "Indonesia is not an Islamic state. We respect all religions."

In the interview, which came a day after the release of an IS video showing the brutal murder of American journalist James Foley, Yudhoyono urged other leaders of the Islamic world to tackle radicalisation.

"This is a new wake-up call to international leaders all over the world, including Islamic leaders," he said.

"All leaders must review how to combat extremism. Changing paradigms on both sides are needed - how the West perceives Islam and how Islam perceives the West."

Indonesia, which holds a Muslim population of approximately 225 million, continues to fight terrorism within the country and a number of Indonesians have reportedly flocked to join the radical Islamic extremists in Iraq and Syria.

"Our citizens here in Indonesia are picking up recruitment messages from Isis containing extremist ideas," the president continued.

"The philosophy of ISIS stands against the fundamental values we embrace in Indonesia. Last Friday, in my state of the union address to the nation, I called on all Indonesians to reject Isis and to stop the spread of its radical ideology.

"My government and security agencies have taken decisive steps to curtail the spread of Isis in Indonesia, including by prohibiting Indonesians to join ISIS or to fight for ISIS, and also by blocking Internet sites that promote this idea."