Something missing.
PF didn't call go around at MDA and Captain didn't do anything. So the Captain actually wanted to descend lower in the hope of becoming visual. No one "froze" or became disorientated either I presume. The Captain had made the landing decision long before the got to the MDA.
I had Sriwijaya tell the tower the other day that he had me visual when he was actually 5 miles away heading in the other direction to turn inbound for the approach. This is very common here. Why did he say that? Well because he knows that if he says he can see me the tower will clear him for the approach. If he cant see me then he will be made to wait. The Lion Air Captain going in to Bali probably had loads of reasons why he wanted to land first time and they could be anything from needing to meet his girlfriend (going around and into the hold and then shooting another approach may take up to an hour and that's eating into my time he's thinking) to not wanting to have to eat his Nasi Goreng cold. You also have to remember that going around here will cause all sorts of nonsense not only from management but from fellow Captains not letting you hear the end of it. Not landing first time is almost like not being man enough for the job.
The question we need to ask is why had the Captain made the landing decision before he commenced the approach?