'balinese' originates in English as a formation from the place name 'Bali' combined with the demonym/adjectival suffix '-ese' (the suffix '-ese' came into European use via Italian/Portuguese, ultimately from Latin '-ensis').

'Bali' was adopted into European languages from Malay/Indonesian 'Bali'; the English adjective and noun 'balinese' developed by adding the suffix '-ese' to the place name, producing the modern English form 'balinese'.

Initially it meant 'of or relating to Bali' (an adjectival sense); over time it has also been used as a noun meaning 'a person from Bali' or 'the Balinese language', so its adjectival and nominal uses coexist.