The dog situation in Bali has several aspects. In the Hindu faith Siwa has a number of manifestations (8?) that are terrible, these manifestations are the Bhairavas, when Siwa is manifested as a Bhairava his vahana (mount) is often a dog.
Other minor deities can also be associated with dogs, and dogs are permitted as pets, or as working dogs, they are sacred in the context that all life is sacred, and some Hindu people believe that looking after dogs can help in achieving moksa. However, dogs are considered unclean and should not be permitted into the house, & most especially not into a temple or other sacred place.
From time to time there have been outbreaks of rabies in Bali, and when this happens any dogs seen on the street are shot. There was a big cleanup of Bali dogs not all that long ago --- maybe ten years ago --- for a long time after that there were not many dogs to be seen on the streets, but in 2018 the numbers seemed to be getting back to something like normal.
There is a black side to the Bali dog matter, and that black side is the dog meat trade.
Do not read this if you are squeamish:-
https://www.abc.net.au/news/2017-06-...urists/8620128
I have been told by several people that the practice of eating dog meat was brought to Bali in the recent past by Christians from the Philippines who came to Bali to work in the tourist industry. The consumption of dog meat is not indigenous to Bali, it is just another contamination brought into Bali by outsiders.