Hendrie, who spent a decade at the Premier League club from the mid-1990s and also had spells at Sheffield United, Stoke City and Blackpool, has signed a two-year deal and is expected to make his debut for the Javanese LPI club on Saturday.
"He will act as a link-man and second striker who will supply our forwards … his presence will give us a lift," said the Bandung chief executive, Mohamad Kusnaeni. "He will be a role model for other players at Bandung FC given his experience playing in the best league in the world."
Capped once by England during his Villa days, Hendrie became a free agent earlier this month when he was released from a short-term deal at League Two side Bradford City.
Bandung, second bottom of the league with two defeats after two matches, aim to use Hendrie's star appeal to boost the growth of talent at the club.
"As a [globally known] player, Lee Hendrie will be appointed our football ambassador for coaching grassroot and youth development players in Bandung," Kusnaeni said.
The LPI is an independent league launched this month, backed by the sports minister but not the Football Association of Indonesia (PSSI). The PSSI's official top flight competition is the 18-club Indonesia Super League (ISL).
The 19-team LPI includes three teams who switched from the ISL and is the brainchild of the oil tycoon Arifin Panigoro.
"The LPI is a reform league concept that meets with Fifa's direction 'For the Good of the Game' Task Force and AFC's Pro-League Committee," the league official Abi Hasantoso said. "The LPI was created to improve the achievements of national football."
Other notable players to have plied their trade on the archipelago include the Argentina World Cup winner Mario Kempes and the Cameroonian striker Roger Milla. (guardian)