Trump Hotels plans to start work on the resort next year and it will be built on a clifftop overlooking the famous 16th century Hindu temple, Tanah Lot.
The hotel, which will be known as Trump International Hotel and Tower Bali, will also feature a large tower as well as an upgrade to the golf course and views overlooking the Indian Ocean.
However, local people on Bali have took issue with the development given the hotel will feature a large tower.
Many Hindus on the island measure the height of buildings in coconut trees and believe that any buildings taller than the trees will anger the gods.
And now some residents on Bali are calling for Trump Hotels to abandon the development.
'These things are sensitive in Bali. The Balinese don’t tend to speak up, but these things related to the sacredness of the temple are very sensitive, only the enforcement is too weak.'
Trump's company and Indonesian firm MNC have pledged $1billion for the hotel in Bali as well as another development in Indonesian capital Jakarta.
However Trump Hotels say the hotel design is still in development and the height of the tower has not yet been determined.
Trump Hotels is a company owned by the now US president, but he insists it is now being managed by his sons Donald Junior and Eric while he is in the White House.
The development for Bali has seen Trump Hotels team up with Indonesian businessman MNC Group founder Hary Tanoesoedibjo.