Where else but Bali? An hour-and-a-half flight from Jakarta, Indonesia's fabled 'Island of the Gods' is an essential stop for anyone visiting the country. Its vibrant Hindu culture, ever-present temples, and scenic interiors have enthralled generations of travellers. The island is equally blessed with some of the world's finest beach resorts. Many of these are located on its southern shores in the five-star enclave of Nusa Dua. But the upcountry lodgings here can be equally alluring, particularly around the highland town of Ubud, Bali's self-styled cultural centre.

For a glimpse of Jakarta's origins as a 17th-century Dutch outpost, take a walking tour of Old Batavia. Located north of the central business district around the port area of Sunda Kelapa, this neighbourhood of faded colonial architecture is past its heyday as the administrative heart of the Dutch East Indies.

But plenty of traces of its bygone atmosphere remain, so start your tour at Sunda Kelapa Harbour, where the crews of Bugis schooners unload goods from across the archipelago.

If you're adventurous, hire a punt for a 30-minute harbour tour; otherwise, head directly for the nearby Maritime Museum.

A few blocks south is the centre of Old Batavia, Fatahillah Square. On the west side of the cobbled plaza is the Museum Wayang, with its vast collection of shadow puppets and dance masks. On the square's east side is the Balai Seni Rupa (Fine Arts Museum), and on the south side is Batavia's old town hall. Completed in 1710, this is the city's oldest building. In its current incarnation as the Jakarta History Museum, it exhibits an expansive collection of Dutch-era memorabilia. End your tour at the stylish Café Batavia.

From international fashion labels to fabulous Indonesian handicrafts and jewellery, Jakarta's retail scene has it all. Directly across the roundabout from Mandarin Oriental, Jakarta is Plaza Indonesia, one of the city's largest and most prestigious malls. It houses everything from Gucci to Hermès and Versace, as well as Japanese department store Sogo.

For a retail experience with more local flavour, head to Sarinah, where the third and fourth floors are entirely devoted to handicrafts.

Or make tracks to Jalan Surabaya, a strip of roadside stalls in the Menteng neighbourhood hawking bric-a-brac and dubious antiques — a great place to practice your bargaining skills!

Guests at Mandarin Oriental don't have to venture far to find some of the best food in the city. The hotel's elegant Xin Hwa (+62 (21) 199 5320) serves spicy specialities from China's Sichuan province; dim sum is available at lunchtime. Also on the premises is Tokio Joe, a laid-back sushi bar and robatayaki grill, and Zigolini, which dishes out excellent Italian cooking.

For a change of scenery, try the duelling Thai and Indian kitchens of Lan Na Thai and Hazara, or the atmospheric Face Bar (+62 (21) 3192 5037)

Start your evenings in style at The Oriental Bar at Mandarin Oriental, where cheongsam-clad ladies serve exotic cocktails.

Across the street, Cinnabar attracts a dedicated crowd of expats and local fashionistas. For unsurpassed views of the city, head up to the penthouse floor of BNI 46 – the tallest building in town – to the chill-out jazz lounge at Circa.

For a hotter alternative, take the pulse of the city's club party scene at Dragonfly.