The cost of a private car and chauffeur in Bali is very reasonable. If, however, you want to drive yourself, you must have an International Driving Licence or an Indonesian Driving Licence, called a ‘SIM.’ If you do not have a permit upon your arrival in Bali, it is fairly easy to obtain one.
If you choose to drive without a licence and the police stop you, you should expect to pay a small penalty. If the police do not ask for money right away, or if they tell you that you must accompany them to the police office, you should ask them if you can pay the fine right there on the spot. The standard fine is generally from Rp. 20,000 – 50,000. Payment of this fine is a preferable alternative to a trip to the local police station to process paperwork. No matter what the circumstances, be polite, be patient.
Also, please consider that driving in Bali requires a certain disregard for all forms of normal traffic rules and road etiquette. Accidents are common, and regardless of the circumstances, more often than not, if one of the parties involved is a tourist, it will be the tourist’s fault. Keep this in mind: even if the police come and say that you are not at fault for the accident, you will most likely still be required to pay for all damages.

Here are some basic guidelines to follow:
The right of way in Bali typically belongs to the biggest vehicle in the road, or to whoever gets there first. Pedestrians are merely considered road hazards. Drivers often enter traffic at will and do not look back to see if their path is clear. People generally expect that other drivers will make way for them, but they are also very patient of others who enter in front of them, and in this way there is a sort of mutual tolerance amongst all drivers. So take extra care to take note of what is going on in front of you, and do not worry too much about what is happening behind you.
The predominant vehicle on the roads in Bali is the ubiquitous moped; its relatively small size enables the driver to slip in and out of lanes and in between other vehicles quite easily, the rule being that there is always enough room for one more to enter the fray. It is best to understand the fluidity of the situation on the road and to expect that anything might happen at any time. Driving with a spirit of accommodation will make travelling more enjoyable and easier to understand.
The smaller mountain roads often have very steep grades and an uncertain quality of service; they are perhaps best travelled by mountain bike
Please also keep in mind that Indonesian roads are dynamic and are constantly changing. This means that a section of the road which you passed by only hours before may be completely different when you pass by again later.
For example, piles of dirt and stones are often dumped into the road for building purposes but no warning signs are posted whatsoever to warn you. The general rule of thumb is to NEVER TAKE YOUR EYES OFF THE ROAD when driving in Bali.
Petrol can be purchased at Government operated stations (pompabensin or pertamina) which are located at the main roads running in and out of larger towns, or at village kiosks which bear the sign “Premium or bensin”. Please keep in mind that when purchasing petrol at these kiosks, the prices typically run around 20% higher than at the large petrol stations, and the petrol is often mixed with water which can damage the engines of cars and motorbikes. Signs which read “Solar” mean diesel.
If your rented vehicle is in need of servicing, please note that service stations and repair shops are called “bengkel”, although it will be the responsibility of the hiring agent to carry out any necessary repairs.
In the unfortunate event that you should be involved in an accident, we encourage you to remain calm and be polite, even try to smile about it, as this will ease the mood of those involved and will be more conducive to avoiding unnecessary hostile confrontations. Please remember you are in foreign country, and that situations such as these are handled very differently here. Bystanders might get involved and may take a partisan stance, whatever the circumstances may be. Do please try and avoid getting into situations that might endanger your well being at all costs.

Our advice to you is to hire a car and driver, as we believe this is a much less stressful means of transportation, and by western standards, is very inexpensive.