Claim: Bali is located by the Lesser Sunda Islands.

Bali -LRB- Balinese : -RRB- is an island and province of Indonesia . The province includes the island of Bali and a few smaller neighbouring islands , notably Nusa Penida , Nusa Lembongan , and Nusa Ceningan . It is located at the westernmost end of the Lesser Sunda Islands , between Java to the west and Lombok to the east . Its capital , Denpasar , is located in the southern part of the island .   With a population of 3,890,757 in the 2010 census , and 4,225,000 as of January 2014 , the island is home to most of Indonesia 's Hindu minority . According to the 2010 Census , 83.5 % of Bali 's population adhered to Balinese Hinduism , followed by 13.4 % Muslim , Christianity at 2.5 % , and Buddhism 0.5 % .   Bali is a popular tourist destination , which has seen a significant rise in tourists since the 1980s . Tourism-related business makes up 80 % of its economy . It is renowned for its highly developed arts , including traditional and modern dance , sculpture , painting , leather , metalworking , and music . The Indonesian International Film Festival is held every year in Bali . In March 2017 , TripAdvisor named the island the world 's top destination in its Traveler 's choice award .   Bali is part of the Coral Triangle , the area with the highest biodiversity of marine species . In this area alone over 500 reef building coral species can be found . For comparison , this is about 7 times as many as in the entire Caribbean . Most recently , Bali was the host of the 2011 ASEAN Summit , 2013 APEC and Miss World 2013 . Bali is the home of the Subak Irrigation System , a UNESCO World Heritage Site .