So how does one obtain an international drivers license in Bali?

Well the official way is done through the pockets of the police, lol.
First fill out paperwork for declaration of a lost international license and then they can issue you a paper copy replacement of the license you never had, pay your money to the police man which he gives you change from his own wallet and places your payment into his own wallet. With a smile he gives you the low-down on the road rules.... And I quote
"light red means no go, you stop, yellow light means stop, and green you must go. Ok you go now."

With that we're ushered out of the police station and into the street.

License obtained ;D