If you asked Balinese where to find cheapest arts and craft, they will recommend you Sukawati!!

Located at Gianyar, Sukawati has a traditional market on the main road and side streets. Known for its art market where you can get the "cheapest price" handicrafts. A wide range of souvenirs of Bali are available, both in finished and semi-finished state. A large variety of woven baskets can be found here along with Balinese ceremonial items made from colourful "Prada" - gold painted cloth. As well paintings, all types of handicrafts and fabrics can be had for a really good price.

Just remember to bargain to get the best buys!