Though Bali is multi-religious, consisting of Christian, Muslim and Buddhist Minorities, the predominant religion is Hinduism.
Balinese Hinduism, called Agama Hindu Dharma, originated from java and is a blend of Shivaism and Buddhism. The theological foundation for the religion comes from Indian philosophy while indigenous beliefs form the backbone of the rituals. This blending is prefectly acceptable in Bali as the saying goes "The truth is one; the interpretation, multiple."
In Balinese Hinduism, the indigenous beliefs manifest in the belief that nature is "power" and each element is subject to influence form spirits. Ancestor worship is also a part of the beliefs. Spirit and ancestors are treated with respect, and they are housed in a shrine and feted with offerings made from agricultural products.
As Gunung Agung is the abode of the gods and the ancestors, it is revered as the "Mother" mountain and is highly sacred to the Balinese. As water and volcanoes - Considered as the wrath of the gods - come from Gunung Agung, the mountain occupies the pole of purity, kaja.
In contrast, the pole of impurity is the sea, or kelod. Balinese Hinduism revolves around this kaja-kelod axis and determines the spatial organization of rituals, architecture and daily life. One sleeps, for example, with one's head in the directionof the mountain.
Religion in Bali varies according to three principles : desa (place), kala (time) and patra (circumstances). Hinduism acknowledges five pillars of faith. They are belief in the one Supreme God (Brahaman of Sang Hyang Widdhi Wasa); belief in the soul as the universal principle of life and consciousness (atma); belief in the fruition of one's deeds (karma phala); belief in the process of birth and death (samsara); and belief in ultimate release (moksa).