Indonesia is not the only country that implements such a system. I believe you have been long enough in Indonesia, to understand that it likes a part of the sub-culture in Indonesia where the system is cherry picked. The authorities tend to implement it only in ways that make policies and lawmakers appear competent, smart, as if they are working in the best interest of the people, nation while often overlooking long-term benefits. Land ownership is one example, but another recent example is the customs duty on bringing mobile phones or tablets valued over USD 500.
Other good example include the rights to work for a WNI spouse sponsored visa, or the holder of Indonesian permanent residence. In many developed countries, a spouse does not even need permanent residency, to work in their spouse countries.
The treatment of Indonesians citizen of Chinese descent as second-class citizens is another example.
Some Chinese Indonesians are not just 3rd or 4th but even even 8th generation, with ancestors who came to Indonesia as early as 1408, like I have posted in here.
Don't hold your breath. The discourse about dual citizenship is always rewarmed before the election, just a bit too early now. Once the election over, they will put it inside the drawer. I don't see this will be different but I'm glad if I'm wrong as I do have an interest.
www.expatindo.org
The situation has gradually improved recently due to the influence of individuals of Chinese descent, from around the world. Additionally, it is driven by the Indonesian government's desire to maintain strong relations with China, which has become a global power and a key partner for Indonesia. There are other factors to consider as well, if you examine the situation more closely.