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"Which only shows that he was an Indonesian citizen, in addition to his US citizenship. That is perfectly legal under US law."

Actually, U.S. law does not acknowledge dual citizenship at all. Either one is a U.S. citizen, or one is not; the beliefs of other nations about a person's citizenship in their country are not taken into reference in deciding this. The U.S. State Department acknowledges that U.S. citizens in fact hold passports from other countries, but U.S. policy and law would not permit anyone to officially acknowledge a U.S. citizen's citizenship of any other country.

Actually, U.S. law does not acknowledge dual citizenship at all. Either one is a U.S. citizen, or one is not; the beliefs of other nations about a person's citizenship in their country are not taken into reference in deciding this.

US law does not forbid dual citizenship. It does not encourage it, but there is nothing illegal about being a citizen of both the US and Kenya, for example. But you are correct that whether or not someone is an American citizen is purely an issue of American law- your status as a citizen of another country is irrelevant in that determination.

The U.S. State Department acknowledges that U.S. citizens in fact hold passports from other countries, but U.S. policy and law would not permit anyone to officially acknowledge a U.S. citizen's citizenship of any other country.

That's not correct. The US is aware that I am both a citizen of the US and Canada- it comes up every time they swipe my passport when I enter the US (the two countries share immigration information, so Canadian immigration officials see the same info when they swipe either my Canadian or American passport- I typically carry both when I travel).