Just realised that you edited my post and removed certain speculation that I'd made. Not mad, I understand why - being accidentally correct and all.
All I can say is.. that's really what happened in-universe?
Bloody hell, I thought that level of administrative derp happened only in Malaysia!
Malaysia: the one nation where you can be born in, to Malaysian parents, and be rejected for a Malaysian Identity Card. Where you actually have to pass Immigration and travel from West Malaysia to East Malaysia using either a passport or your IC.