Listyo Sigit Prabowo, who is not a relative of the president, was among three serving police officers detained and accused of illegally tapping phones of the president, journalists, politicians, business people and more in 2025 and 2026.
Listyo had been national police chief for five years before he became the president's chief of staff in October.
"This was, of course, carried out by certain rogue individuals, and we are also of the view that what was done may already fall into a category that can be considered an act tending toward treason," presidential spokesperson, Prasetyo Hadi, told reporters in announcing the sacking on Wednesday.
"It also tends toward acts that endanger state interests and the safety of the nation's leadership, including the safety of the head of state," he said.
The arrests come as Prabowo faces challenges on multiple fronts, from a slumping approval rating amid discontent over his policies to a battle to restore investor confidence amid record stock market sell-offs, a declining currency and warnings of an equities market downgrade by index provider MSCI.
The government has yet to determine the motive for the wiretapping, said Yusril Ihza Mahendra, Indonesia's senior minister for legal affairs.
Police late on Tuesday said the suspects were being investigated for unlawful wiretaps on the president, state officials, media, politicians, business people, and leaders of mass organisations and non-governmental groups.
They orchestrated the wiretaps without a formal request from investigators and had in October ordered electronic records of their monitoring activities be deleted, police said.
Police initially identified the suspects only by the letters of their names.
Local media named the other two as Ahrie Sonta Nasution, head of national police legal division, and Eko Hadi Santoso, a senior officer at the national police educational institution.
Reuters could not immediately contact the three suspects or their lawyers.
Political analyst Yanuar Nugroho, a visiting senior fellow at Singapore's Yusof Ishak Institute, said the chief of staff role under President Prabowo had diminished in importance and Listyo may have been given the job to take him away from the crucial post of national police chief.
Prabowo needs a police chief he can trust and Listyo "is not the one", Yanuar said, adding Listyo was known as a loyalist of former President Joko Widodo.