Scott Morrison 'distressed' over Bali bomb site development

Prime Minister Scott Morrison says the government is working to resolve the future of the site in Bali where dozens of Australians were killed in 2002.

Prime Minister Scott Morrison met survivors of the 2002 Bali Bombings in 2018. Source: AAP

Plans to apparently redevelop the Bali site where 202 people were killed in a bombing is "deeply distressing", Prime Minister Scott Morrison says.

Local Bali authorities have granted a permit for a five-storey restaurant and monument on the site of the Sari Club, where 88 Australians were among those killed in a car bomb attack in 2002, the ABC reported.

The move has upset survivors of the attack, who have been working for years to turn the land into a peace park.

A tourist takes a picture at the former site of the Sari Club. Source: AAP

"Australia provided support and funding to establish a Peace Park on the ex-Sari Club site, for remembrance and quiet reflection," Mr Morrison said on Twitter on Thursday evening.

"The Australian government will continue to work with the Indonesian authorities to seek to resolve this issue and ensure the memories and families of all those who were murdered in that shocking terrorist attack are properly respected."

The consul-general in Bali, Helena Studdert, has been working tirelessly to resolve the issue, the prime minister said.

Survivors told the ABC they had been given reassurances the site would never be used for commercial purposes.