Visa

the 2nd choice is better,cheaper&easier.

Probably the best way to do this is to get a standard Visa On Arrival (VOA) at the airport. This is good for 30 days, but you can extend it once without leaving the country. I've written a Squidoo Lens that explains how to do that, which you can see at http://www.squidoo.com/extendindonesianvisaonarrival

So that covers you for 60 days. After that, you do a quick trip to somewhere like Singapore and repeat the process for another 60 days.

Air Asia fly between Bali and Singapore but it can be cheaper to go to Kuala Lumpur (even though it's further). To really save money, you could take a local flight (with someone like Merpati or Lion Air) to Batam Island and then a ferry to Singapore.

Good luck!
Andrew