As for your opinion that it is another case of Indonesia's total lack of addressing strategic issues well it is hardly a strategic issue and in any case I believe the policy is plain enough and Indonesia has managed to enter into double tax treaties with more 50 or so countries.
Your name is well chosen and I wonder why you have such a hair up your a*s about expats? I am not an expat BTW, living as I do in the chosen land and visiting Bali only for short periods on tourist visas so I have no personal tax issues. I was simply trying to interject the benefit of what I observe travelling the world in a constructive way.
You are, however, as is usual in your posts, ignoring the message to shoot the messenger. Firstly the topic is of RETIREMENT visas, not foreigners avoiding paying taxes whilst working in Indonesia, which should rightly be condemned. Not forgetting, of course, that Indonesians are not without culpability in this respect according to the comparative tax contribution to GDP data.
Secondly, many LDC's have thought this issue through in some detail and have, correctly, identified that the numbers reaching retirement age (The so-called baby boomers) over the next decade do indeed represent a strategic opportunity to benefit local economies without any loss of employment for local people. Policies have therefore been deployed to implement the strategy and to WELCOME such retirees, backed up by focused media campaigns (The Philippines, Costa Rica etc.) These policies are equivocal regarding tax residency.
Should Indonesia not wish to take this route (For whatever reasons, Indonesia is a Sovereign State and fully entitled to make its own decisions) then that's fine. But if Indonesia decides to implement a policy of encouraging retirees, then it has to recognise it is in competition with other countries who are doing it right.