Bali's a fairly big island and you'll need a method to get around, if you plan on exploring more than the hostel's pool. The traffic is chaotic. There is a daily traffic jam in Denpasar, Kuta, and major tourist centers. Driving is on the left side.

For different excursions around the island sometimes, it is common to buy a trip via a hostel or at one of the street agencies (they are seen everywhere in special tents marked "Tourist Information").

Once you arrive at your destination, you may encounter difficult walking conditions if you need to walk along streets. Sidewalks in much of Bali are simply the covered tops of open ditches and in many places only 2 ft wide. This makes for extremely uncomfortable single-file walking next to traffic. Often the sidewalk is blocked with a motorbike or caved-in section, necessitating dangerous darting into traffic. Many of island's conventional streets are simply not pedestrian-friendly. Beach areas and major tourist areas are easier to walk around -- Sanur in particular has a wide beachfront pathway with many cafes and bars.


By taxi
Metered taxis are very common in southern Bali up to Denpasar but not available elsewhere. The starting fee is Rp 5,000 for the first two km and the meter ticks up Rp 5,000 per kilometer afterward. Waiting time is Rp 20,000 per hour. Trips outside southern Bali will incur an extra charge of 30%, as the driver has to go back empty — if day-tripping, it's often cheaper and more convenient to arrange for your driver to wait and take you back.
You may also rent a car with a driver for half a day or for the whole day in order to travel around the island. You pay approximately Rp. 375,000 for the whole day and tell him what you want to see. The price is fixed and to be discussed before your trip. Do not pay until the end of the day.


By bemo
Bemos, minivans which serve as a flexible bus service, are Bali's "traditional" form of transportation, but they have largely given way to metered taxis in the south. Fares on shared bemos can be very cheap, but drivers will often insist that foreign tourists charter the entire vehicle, in which case they'll usually ask for taxi prices or more.


By car or motorbike
Car and motorbike rentals are also available, but may not be safe for drivers used to more formal traffic rules. Consider hiring a car and driver as you can relax, be safe, and not get lost. If you rent a vehicle, good bargaining skills should allow you to rent a car for about Rp. 80 - 120,000 per day, depending on the length of the rental and the type of car. Newer, large cars will cost more, but are of dubious value on Bali's narrow roads. Motorcycles, typically 125cc, some with automatic transmissions, rent for Rp. 30 - 35,000 per day. A proper-fitting helmet should be included, and its use is compulsory in Bali. Guide books state that Bali is no place to learn to ride a motorbike, and this is good advice. In areas outside of the tourist enclaves of south Bali, a motorbike is a wonderful way to see the island, but in south Bali, with its crush of traffic, the chances of an accident are greatly increased. An International Driving Permit is required for vehicle rental, with motorcycle endorsement if renting a motorbike. The IDP is seldom requested by the person renting you the vehicle, but will be required (along with the vehicle's registration papers) if stopped by the police (Typically a 50,000Rp "fine" will allow you to keep driving). An IDP is easily available from motoring clubs in your home country.


By bicycle
Travel by bicycle is quite possible, and provides a very different cultural experience to other means of transport. You should bring your own touring bike, or buy locally – there is at least one well stocked bike shop in Denpasar, but with a racing/mountain bike focus. While traffic conditions may appear challenging at first, you can acclimatise after a few days, especially once you escape the chaotic heavy traffic of southern Bali.


By rental car
Rental car services owned by individuals or companies are easy to find in Bali. For first timers, it's better to hire a rental car with drivers including gasoline. Otherwise it's definitely more fun to drive for yourself. Using rental cars is for sure cheaper than taxi, and more efficient than using other public transportation. The drivers are usually English speakers, and they can also act as a tourist guide who will recommend you some good tourist destinations and good restaurants.
Using rental cars from rental car companies is more expensive, but you can hire a cheaper rental car owned by individuals. You can ask a hostel staff or a security officer to recommend you a good individually owned rental car. Price is Rp. 400,000 - 500,000 for 1 day (10 hours) depending on your negotiation. Make sure the price already included gasoline and driver. Petrol costs, with the removal of some government subsidies in recent years have escalated dramatically, distance will be a factor in total costs. Entrance tickets of tourist destination and parking fee will be charged to guests. To visit most of the entire tourist destinations in Bali, you will need about 3 days.

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Based on a work at Wikitravel.org & Traveldudes.org.