The four were arrested in connection with a crime called 'syndicated estafa' in a case filed by former business partners in the Philippines.
"The crime of syndicated estafa is unknown in Indonesian jurisprudence," Manila Standard said.
"Since the extradition agreement between the two countries adheres to the principle of 'dual criminality,' the court said Indonesia and the Philippines must both consider any action a crime before extradition can be granted."
Since the extradition request was turned down, the four had been ordered to be released from police detention and their passports returned.
The four had since appealed to the Supreme Court in Quezon City to stop the trial against them at a lower court.