Welcome Daniel. Sorry to counter you Manolo, but this is a 5 luk(curve) keris, not 7. The number is reached by counting the inside of the curve and alternating from one side to the other. It is, indeed, Balinese and i would agree that the blade is older than the dress. The dress was probably contempory to the time your granddad picked this keris up. It is not very high end, but i think it is a step above the "tourist" dress being made today. Edward Frey identifies this type of dress as being for a barong dance keris, but they seem to also be common for sale to tourists. I don't believe the figure is meant to be a raksasa, but may be a form of a rice deity whose name alludes me at the moment. Someone here will no doubt know. Note that he holds a sheath of rice over his shoulder. The blade is much nicer than the dress, though it is hard to say how much nicer since it is "out of stain" and it is hard to judge the pamor(pattern) work. Age is always difficult to determine, but i would put this one in the 19th century and it may be as old around the middle of that century.
I don't know if there is anyone in your area that can do this work, but it would be really nice to see this keris cleaned and restained. Re-staining would be what i would do with it since you have asked and you are correct that it is the tradition to do so. Old Bali keris are getting very hard to find so i would say this one is a keeper.
