More than 2,000 people, including government, military officials and students joined the event, Efe news quoted the organiser Saya Indonesia as saying.
While tourists surfed the waves, hundreds of people marched at the beach, each holding Indonesian flags attached to bamboo poles.
They then lined up and listened as Bali's military chief gave a speech about the country, followed by a group singing the national anthem.
A speaker announced that at the end of the celebration 100 baby sea turtles which were kept in two large buckets would be released into the ocean.
More formal ceremonies will be held in Bali on Wednesday for the country's Independence Day.
On August 17, 1945, Indonesia was declared independent from The Netherlands, which had colonised the archipelago since the early 19th century.
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