Just an update on the dual citizenship situation. My wife, in her enthusiasm over this, dropped by the immigration office here in Singaraja. She had a rather upsetting, to say the least, conversation with a fellow there, who showed what I hope is not going to be the attitude that immigration takes towards this new law. In short, it was if you're so interested in your kids having Indonesian passports, why did you make them Americans in the first place. Then it was come back next year and we'll know more.
Needless to say, I calmed her down and had her call our folks at Bali IDE who confirmed that the law was passed, but that it would take a little while before they (Bali IDE) had all the particulars, etc.
Two lessons to be learned for those who haven't worked with immigration before -
A new law doesn't mean a new change in their attitude towards foreigners which I have always found to be bordering on the xenophobic, and second, use an agent. My wife agrees with both and has fortunately agreed that we'll let our agent deal this as it comes down the pipe.