http://www.horizonsunlimited.com/hubb/#
This guy bought a motorbike in Indonesia and rode happily around on it. He wrote that the only thing the ploice wanted from him when they stopped him was the bike papers, IDP and a selfie...LOL.
About tourist visa in Indo - try to get a 60 day visa, I think its called a social visa as it gives you 60 days stay and it can be extended 4 x 30 days versus a normal tourist visa gives you only 30 days and can be extended only x 1 another 30 days.
You might be right that a small locally registrated bike can slip in and out of Indo and Malaysia without a Carnet - its only on Borneo/Kalimantan those two countries actually share a landborder.
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In the end everything will be fine. If its not fine its not the end....
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