Carry usd and convert locally. But make sure you don't get swindled especially in seminyak.
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IDR is the currency of Indonesia. you can carry dollar from here and get the same encashed in IDR in Bali as they pay better than in India.
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Bali works best if u use ur ATM card and withdraw IDR. its the cheapest and most reliable cureency.
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Dollar is the universal currency used almost everywhere. Yes there are ATM's where you can withdraw directly provided you have an international card.
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Best and safe way is to carry USd and exchange to IDR. but beware exchange from proper forex exchanger as there is a chance of giving you fake notes which you will come to know later when you use it.