Visa here is 30 days with an option to extend for another 30. Much the same as Thailand, Malaysia and other SE Asian countries, although I believe Vietnam is now offering 90 day tourist visas (and about time too!).
Why would a country discourage long term stays?
You’ve never heard of a country opposed to immigration?
Of course, the situation isn’t identical between Indonesia and the US, but it is true that there is concern that foreigners will take jobs from Indonesians. Another possible reason: foreigners are disliked for corrupting local morals/cultural norms. Or they are viewed as wealthy enough to pay big sums of money in order to stay, and if they don’t, well, punishment is an incentive to better bilk the next foreigner.
In reference to Indonesia, especially Bali, people who just arrive and never leave create problems for the local people. Westerners who can afford 5million rupiah a month to rent a house are shutting locals out of the housing market. Westerners are prepared to pay more for goods and services, so the prices go up out of the reach of the local folk.
Limiting visas for overseas arrivals is a wise move by any nation. Just look at the Russian situation in Phuket, Thailand for examples of how unfettered visas are just making problems worse (oh, except for the rich developers and investors of course).
That’s an excellent point, certainly in terms of perceptions that drive Indonesian policy. I’m not 100% certain a deep dive into the data would fully support that assertion. It is more a case of two markets existing side by side. (There is a term for this in microeconomics [not parallel markets, that is something else], but it is escaping me now - grad school was eons ago.)
When I lived in Jakarta, I was very happy to shop at places that never saw foreigners (well, not so happy when a huge fuss was made, but people were always friendly and meant well). Most foreigners couldn’t do this because they didn’t have adequate language skills, and some were also too snobbish or grossed out, especially by wet markets.
A couple of differences (setting aside hygiene standards!) were very apparent. Prices were much lower in local markets and they sold a lot of lesser quality items. My point is that, to the extent that foreigners and low-income locals don’t cross paths too much in the literal and abstract markets, prices for locals are not terribly disrupted by the presence of foreigners.
There are also a few benefits to considers, assuming that the foreign population has reached a sufficiently large proportion that it could possibly affect prices for locals. Those foreigners are then employing people, bringing money into the local economy, and possibly providing valuable job training to locals (the Indonesian government has long had a policy of insisting that companies invest in training for all expat hires, and in some cases there is a set limit of the number of years a position can be held by a foreigner before the job must be filled by an Indonesian citizen).
Sorry for the long lecture. The costs and benefits of expats in Indonesia is something I’ve given much thought to for many reasons (when I ran the American Chamber of Commerce, I needed to be able to defend the presence of American companies and workers).
Of course, I’m only talking about relatively wealthy, educated expats. The topic of imported menial labor, for example in Singapore where poor South Asians are brought in to do the jobs no Singaporean will touch, is completely different, as is the situation of young SE Asian women who are sometimes horribly abused with no recourse when they go to Saudi.
I know It’s been a while since this thread last saw the light of day, but I ended up being a bit outrageous in the end.
After a month in Bali, I hopped a flight to Bangkok, then a couple of weeks in Krabi (south) and then another couple of weeks in Kanchanaburi. Not really doing much of the touristy stuff as I was trying to be as frugal as possible, but just being somewhere different is exciting in itself.
And then I flew back to Australia. It’s a bit complicated to explain, but to remain eligible for government benefits (even though you don’t get any payment while out of the country) you can’t be gone for more than 12 weeks. So came back, and hoping daughter had gotten over her case of the shits asked to stay there for a week or two, was answered with a single word, ‘No’.
Then I had to try to find somewhere to stay, in Queensland, during school holidays. It’s bad enough when it’s NOT holidays as Far North Queensland (think Great Barrier Reef, rainforests, tropical paradises) but in the end I found a sort-of boarding house. It was a room with a fold-out bed, shared kitchen and bathroom and was $540 AUD per WEEK. That was more than my full budget for a fortnight in Bali and Thailand!! Thus, once I’d done all my businessey stuff, got some prescriptions filled etc etc, I booked a flight back to Bali, one way.
Now this time I’d teed up some super-cheap accommodation through a Balinese acquaintance and for $600 AUD per month, I had a large room, private kitchen and bathroom, gorgeous swimming pool and well, I was in heaven really. Oh and cleaners changed my sheets and towels every second day. 
The beach was just 5 minutes walk, the sunrises were a delight, and I was staying in Sanur, a much ‘nicer’ part of Bali than the rougher Kuta, Seminyak and Legian.
But after a month of that, I got a bit bored so booked a flight to Vietnam, my favourite country in the world. Just by the by, flights within SE Asia are ridiculously cheap, so it was a no-brainer to move on really. First stop Saigon for a week, then Phu Quoc (an island off the south coast of VN, near Cambodia) and then up to Da Nang and Hoi An in central Vietnam. The weather was stinking hot everywhere, but when I travel I head out early morning (mainly for coffee and whatever street stalls are selling delicious foods) then back to the comfort of the hotel before heading out again late afternoon.
I treated myself a bit in Hoi An. It’s a city/town renowned for its clothing and tailors who will make you whatever you want, in whatever fabric you pick, and the prices are insane. I bought two pairs of made-to-measure linen cargo pants AND a pair of made-to-measure suede Birks (the closed in toe variety) AND a gorgeous leather backpack that set me back the grand total of just over 3million VND, or $180 AUD. Just the Birks alone in Aus would have cost more than that!!
I ate snails from a little vendor across the street from my hotel, I ate bbq fish on the beach at An Bang, I ate banh mi, pho, and to my utter embarrassment, I even ordered KFC via Grab (the Uber equivalent in SE ASIA). I had an absolutely wonderful time, but my time to return to Aus was up again.
I’m back in Australia. The friend who I mentioned in the first part of the OP has settled his issues, and offered me a place to stay until I decide where (or if) to go next. Unfortunately it’s in Victoria. Victoria at this time of year is FUCKING COLD. I had NO warm clothes, only Asian-wear of skimpy tops and flowing pants. So first thing was heading to the nearest Opportunity Shop to stock up on jumpers, jeans, and anything at all to keep the chill at bay. At least the Birks I bought in Hoi An keep my feet warm, well they do NOW that I have thick woolly sox on as well.
My friend lives waaaay out in the boonies from any major town or centre. But he’s got this sort of ‘converted shed’ which is decked out with a comfy bed, a lounge, a fridge, cooking top, kettle and a private bathroom. I am extremely grateful for his kindness in letting me stay here as long as I need, but I’m not sure I can deal with such solitude for any great length of time. I miss the tooting cars, the karaoke bars, the need to look both ways five times before crossing a street, the smell of bbq on the roadside, the smell of frangipani (but not the smell of durian) but most of all, I miss the coffee. Sure, I could buy some Viet coffee here and buy a phin to make it, but it’s just not the same, not by any stretch!
While I’m here, I’m doing much homework on obtaining ‘social housing’ which will help me afford somewhere to live permanently. But I can’t guarantee that the travel itch won’t set in again and I might find myself packing a bag and heading off somewhere else in the future. Especially if an inheritance (mentioned in another thread months ago) comes good as the lawyers expect it will!! My future is totally uncertain, but despite the months of anxiety, I’m getting better at just going with the vibe. 
Oh, sad addendum: the gorgeous doggie that was the catalyst for much of this shit got rehomed not long after I left because no-one wanted to look after her! I only found out yesterday, and if I ever see my daughter again, it might be too soon. What a shitty thing to do.