An insult commonly used among Americans when they display their own brand of humor, and receivers get uncomfortable and take it seriously because they're totally unfamiliar with their culture due to never having been to America, much less interacting with Americans.
To explain, Americans have a particularly very aggressive personality and sense of humor, so a thick skin is a strict prerequisite to hanging out with the likes of them. The reason why the insult tells you to go to Indonesia of all countries (can be substituted with any other country in Southeast Asia) is because by contrast, Indonesians are the softest thus the easiest to hang out with, but others will look down on you for it. Think of Spongebob trying to enter the Salty Spitoon only to get told to enter Weenie Hut Jr. instead to get a good idea.
If you dismiss someone upsetting you only to get called out for failing to understand Americans and their humor, don't get defensive, admit your mistake and start growing a thicker skin. Unless you want to be around Indonesians the rest of your life.
A: "Why did you do that! That was so mean!"
B: "Bruh, you don't understand American culture, either grow a thick skin or go to Indonesia or something"