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The Uluwatu Monkey Temple is a spectacular set of Balinese monasteries perched about towering cliffs along the beautiful rugged coastline with friendly monkeys playing everywhere. Located on the west face of the south peninsula, it's about a 1 hour scooter ride from Kuta. The scooter ride to get here is fairly calm without too much traffic and the road is very simple to follow. Once you arrive at the monkey temple, it's a few thousand rupees to park. The locals will try to hustle you to rent a sarong, but you shouldn't have to pay if you have your own, its only 10,000 rupees anyways to rent.
Make sure to have some goodies to give the monkeys while here... if you are brave enough to deal with monkeys. I found the monkeys here fairly polite and docile, but once they realize you have food, they may become insistent for more and tug on your sarong. Personally, I found it rather cute, but it may perturb others. The monkeys love bananas and banana chips. If they ever become a problem, just ignore them and walk away quickly.
There is plenty of hiking in this location with small trails that follow the cliffs north and south. Personally, I did not explore around here for too long, but coming here is a very pleasant way to spend a few hours in the afternoon. I highly recommend visiting this location as part of a tour of the southern peninsula. Consult the map for more zones nearby.