"Setengah masyarakat desa ini adalah orang Bali."

Translation: Half of the population of this village is Balinese.

[LuQLingo]

Setengah means 'a half' so 'is' is the correct answer. However, in modern English both 'half is' and 'half are' are used.

[RobertEddy]

For English half is, not half are

[JorisHeylen]

Not 100% correct, in that case it should be "dari Bali", not "orang Bali".

[beezneezlingo]

Its not fixed. I got "are balinese" marked as wrong.