Hostel By Moritz in existence since 1991, is by far the most well known backpackers hostel in Bandung . And one of the few options I might add, because strangely the city lacks of low budget accommodation to cater to travelers who don't swim in Rupiahs.
It is located in central Bandung about 10 minutes from the train station and the bus terminal. It is in walking proximity of Pasar Baru (the chaotic central market) and Kota Kembang (the even more chaotic illegal cd and dvd market). The street Moritz is situated in is not particularly enchanting, but offers a sight of everyday Bandung life: a lot of activity in between worn-out buildings.
It has the typical ambience of a travelers lodge, with a lobby that has been decorated with wayang puppets and an assortment of indigenous artefacts ranging from wooden spears to bows and arrows. At night it transforms into a meeting place for guests and staff, often escalating into internationally tinted late night congregations.
The rooms are divided over three floors, and are for backpackers standards quite moderate in size. There's a minimal sense of decoration with some bamboo walls, and furniture. The rooms with bathroom inside spur the luxury of a Western style toilet and newly fitted showers, instead of the usual squatting toilet and mandi tub.
Although the atmosphere is not particularly charming or cozy, the staff is friendly and regards visitors as family. For this reason a lot of regulars keep coming back to Moritz. They try to help newcomers out and in a city like Bandung this might be exactly what you need.