Can I change country of residence while waiting on H-1B Results?

Question: the H-1B visa petition filed has Dubai as the consulate to be notified if approved. The sponsoring company now wants to hire the individual out of Indonesia next month, while waiting on approval/denial results. Is this allowed? Or will it negatively affect the visa process?

You will have to check w/ US consulate in Indonesia about this. Different consulates have different policies about TCNs. They may allow you to take H-1 interview there, or ask you to appear in your home country.