I find the public transports in Iceland not as convenient as how most European countries are. There is a limited number of buses operating daily, with very limited routes. For example, it would take me a whopping 45 minutes bus ride from my house to town centre, which would only take me 10-12 minutes drive.
So, if you are anything like me, you’d opt for getting a car once you arrive in Iceland and drive your way everywhere.
Our Indonesian license is valid for driving in this country for the first six months since our arrival in Iceland. Afterwards, we are required to apply and obtain Icelandic driving license.
Here is the step-by-step instructions on how to apply for the driving license. Simply put, since Indonesia is not part of EU/EEA, we have to take BOTH theoretical and practical test for the driving license. Though the whole process seems to be lengthy and complicated, it really isn’t. The only drawback when I applied for my license was the fact that our Indonesian driving licences only provide information in Indonesian language, which required me to have it translated (bother, bother, bother…) before applying for the Icelandic one. So my advice to you all would be, to have all formal documents (e.g. driving license, birth certificate, etc.) translated to English if they are not already so.
If you happen to be an avid driver but for some reasons do not have your Indonesian driving licenses on hand (e.g. lost, expired, etc.), I’d suggest for you to go and get it straight away before coming to Iceland. Because once you get here, and try to apply for the Icelandic driving license, they won’t allow you to take the tests only (because you need to present your current driving license for that), but you will have to take up a whole driving courses and lessons in order to be qualified for driving tests, and trust me, not only it would be very lame, it would be very expensive as well (I think it can cost more than 100,000 ISK for the whole process, ouch!).