Technically, there's no proof Obama ever had U.S. citizenship to lose in Indonesia. And also, the law doesn't address children whose citizenship is affected by adoption, especially in countries where dual citizenship is not allowed.
“And also, the law doesn’t address children whose citizenship is affected by adoption, especially in countries where dual citizenship is not allowed.”
Not true. The law specifies how someone can lose their US citzenship and adoption by a foreign national is not on the list. Therefore a child adopted by a foreign national does not automatically lose their US citizenship. How that might impact their status with the adopting parents home country is immaterial to US law unless there is a separate treaty with that country.
If Indonesia did not allow dual citizenship, then an adopted US citizen child would have to undergo naturalization in Indonesia if his parents wanted him to have Indonesian citizenship and he would come under 349(a)(1).