Indonesian President Joko Widodo dismissed his energy minister after it was revealed that he held US and Indonesian citizenship.

Arcandra Tahar, a petroleum engineer who spent 20 years working in the United States, was appointed to the post of energy and mineral resources minister as part of a cabinet reshuffle last month.

"Following questions from the public about the citizenship of the energy and mineral resources minister, the president has decided to honourably discharge him," Minister of State Secretariat Pratikno said in a televised announcement last night.

Reports that Arcandra held US citizenship emerged over the weekend, with unnamed sources confirming that he took US citizenship in 2012 after a naturalisation process.

The reports also revealed that he had used his US passport to enter Indonesia on several occasions in the past.

Indonesia does not recognise dual nationality, meaning locals who take an oath of allegiance to a foreign country automatically lose their Indonesian citizenship.

Arcandra has insisted that he is an Indonesian national, saying he had a valid Indonesian passport.

The controversy has been seized on by Joko's critics to raise questions about his leadership.

- dpa