Lolo Soetoro and Stanley Ann were living in Jakarta (1965-1971) during a dictatorship, when the nation was a police state.
Anti-Americanism was widespread and their son was registered to attend public school.
The school registration, a copy of which I saw back in the summer of 2008, stated that the boy was Barry Soetoro, his father was Lolo Soetoro, the boy was Muslim and an Indonesian citizen.
To prove the above, Lolo would have had to provide identification. In the U.S., school districts require birth certificates. I assume Indonesia would have required the same or an equivalent.
If what you say is true, then Barry Soetoro had Indonesian citizenship and a passport. It is known that he traveled between Indonesia and Hawaii a few times, and it wasn’t on his mother’s passport as documents from the State Department show he was removed after 1965.
The school registration did, indeed, state all that you posit, and BS was , somehow, regarded as an Indonesian citizen. It would have taken a bit of doing to secure for BS the Indon citizenship, but, then as now, with properly placed funds, you can do anything here. Further, ol’ Lolo had a gubmint job, which presumably greased the ways.
As posted several times previously in this forum, I tried to do a bit of sleuthing re: these matters back in ‘09 through aquaintences in the Imigrasi, but was told that all had been scrubbed in 2007 by some visiting Yanks.