- Bali city does not exist. Bali is actually an Indonesian province located in the westernmost part of the Lesser Sunda Islands. The capital city of Bali is Denpasar, which is also the largest city on the island. Bali is renowned for its stunning landscapes, vibrant culture, numerous temples, beautiful beaches, and vibrant nightlife. It is a popular tourist destination known for its rich Hindu religious traditions, unique arts and crafts, and traditional ceremonies.