I asked Ketut, the driver who accompanied me on my sightseeing tours, why the Balinese cover the lower parts of statues. He answered (in an acquired Australian accent):
Because they have a spirit. I have a spirit, I cover my body. They have a spirit too, why shouldn't they be covered like me?
There is a god in everything. There is a god in this statue. There is a god in this ant. There is a god in me. There is a god in you.
When I take a flower from this tree, for my offering, I take it and thank the tree for the flower. When I take a banana from a tree, I thank the tree for the banana.