The part you highlighted applies to minors who lost the US citizenship through naturalization in a foreign state because their parents naturalized in a foreign state. If so they have an opportunity to recapture their US citizenship until age twenty-five.
Obama’s mother, as far as we know, did not naturalize as an Indonesian national. Soetoro adopted Obama in Hawaii. Obama’s name was changed in Hawaii to Barry Soetoro. The Soetoro adoption was finalized in 1967 in Hawaii. Soetoro and Stanley Ann renounced Barry Soetoro’s (formerly Barack Hussein Obama, II) US citizenship. Since Barry Soetoro did lose his US citizenship based upon the naturalization of a parent, SoS Dean Rusk issued Barry Soetoro (formerly Barack Hussein Obama, II) a CLN in 1968 upon an application filed in his behalf by a parent, guardian, or duly authorized agent.
Get over yourself. Obama naturalized as a US citizen in 1983. It’s a fact.
considering the law, how did that happen at age 7? since you say his mother did not naturalize, how did he lose his citizenship because of naturalization of a parent?
He might have naturalized in 1983 but there is no evidence and its not possible he lost his citizenship from naturalization of parents. It very likely could have been lost from fraud or he might never have been one. Suppose mama admitted his birth was in Kenya when she wanted him in Indonesia, got his citizenship revoked or it was discovered by INS when checking on Obama Senior and she then applied for immigrant status for him ? that seems more logical to me.
Under your scenario Obama could not become an Indonesian citizen. He would have needed to be adopted before the age of five. That is the only way he could gain Indonesian citizenship before the age of eighteen.