The Denpasar municipal administration designated on Thursday the island of Serangan as a marine study center.
Serangan Island, 10 kilometers off Denpasar's east coast, was a traditional Balinese fishing village before it was taken over for the Bali Turtle Island Development project a few years ago.
Serangan Island is now connected to Denpasar thanks to a reclamation project as part of the development, which led to protests from environmentalists.
The reclamation project severely damaged the island's marine and coastal ecosystems, decimating its coral, seaweed and fish populations.
"Local fishermen together with the community have worked hard to save and preserve their marine assets by replanting coral reefs, conserving the coastal areas and the land," said I.G.N. Eddy Mulya, the mayor's assistant on economic affairs, prior to Friday's launch of the three-day Serangan Green Festival.
"They used simple conservation methods with limited knowledge and equipment, but it worked very well."
Local environmental activist Wayan Patut initiated a coral transplantation scheme along Serangan's coast.
"We learned how to transplant coral reefs from our own experiences, and helped other communities do the same to preserve our marine heritage," Patut said.
He added officials from various government institutions and NGOs visited Serangan Island to study the island's ecosystem.
In previous times, he said, local fishermen sold bits of the coral reefs.
"But now they're active participants in the coral reef conservation program," Patut said, adding the community had grown aware of the importance of preserving their natural bounty.
Serangan village head I Made Poniman said the influx of researchers, academics and environmentalists had encouraged the local community to learn more about environmental issues.
"The experts have taught us to wisely explore the island's economic potential, so we can raise the quality of life," he said.
The villagers have learned to process fish and seaweed and pack it as jelly, syrup and other products.
Udayana University anthropologist Wayan Geriya said Serangan Island played a significant role in multicultural Balinese community. Its name derives from the Balinese word sireangen, or impressive.
Geriya said the island was a longtime model for religious tolerance. The arrival of ethnic Bugis from Makassar, South Sulawesi, since the 18th century has formed a multi-ethnic community.
Thousands of Balinese Hindu visit the island to pray at its huge Sakenan Temple every Kuningan celebration, which falls every six months in the Balinese calendar.
"The local community consists of Hindu and Muslim families who have lived for centuries in harmony," Geriya said.
"The designation of Serangan as a marine study center can have a positive impacts on the local people and the island. It can be developed as world-class marine study and tourism center."
The annual Serangan Green Festival may also promote it as an alternative destination to the tourist hot spots of Sanur and Kuta, he added.