Hidayat won 15-8, 15-7, recovering from 6-0 down in the first game and 3-0 down in the second to seal victory.
Indonesia's Soni Dwi Kuncoro beat Thailand's Ponsana Boonsak 15-11 17-16 to win bronze the bronze medal.
Ahead of the Games, China had been strongly fancied to win the title but their three players, including top seed Lin Dan, all made early exits.
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The defining images