The 30-year-old Indian on Saturday entered the finals by defeating Yu Igarashi of Japan, but he could not maintain his rhythm in the title match.
93rd ranked Jayaram in the world failed to compete the 79th ranked Indonesia's Rhustavito, and lost in just 28 minutes.
Rhustavito had earlier, defeated another Indian player Gemini Manjunath in the semi-finals.
Before this match Jayaram and Hustavito, met in 2013 Thailand Open, where Jayaram had defeated Rhustavito 21-11, 19-21, 21-9, in a three-game fight. (UNI)