This article analyzes the changes in the visual arts of the village of Batun (Bali Island, Indonesia) in the 1930s in the context of the activities of the association of masters «Pita Maha», organized by the Russian-German artist W. Spies (1895-1942). Based on the materials of the artistic creativity of the masters of the association from the Batuan village, which arose at the junction of traditional art and the concepts of Western painting, the problems of the formation of a new Balinese art are considered. The relevance is due to insufficient study of materials devoted to the history of the formation of contemporary art on the island, as an example of integrating the contact of eastern and western traditions.