The main palace building are built on a higher ground overlooking Tampaksiring Tirta Empul Temple and Mount Agung.

[2][3] The idea to construct a new Indonesian Presidential Palace was initiated by Indonesia's first president, Sukarno.

[citation needed] The construction was prompted by the need to provide the lodging or villa befitting very important person, state guest, royalties, heads of state or heads of government during their stay in Bali.

The guestshouse was often used by visiting foreign dignitaries, guests and officials of East Indies.

Soedarsono to design a new palace and the preparation commenced, thus the old guesthouse of Gianyar's King was demolished.