Baseline modified for islanders (8)
I believe the answer is:
balinese
'islanders' is the definition.
(people from Bali in Indonesia)
'baseline modified' is the wordplay.
'modified' is an anagram indicator.
'baseline' is an anagram of 'BALINESE'.
'for' is the link.
(Other definitions for balinese that I've seen before include "Asian language" , "policy needs external support" , "Foreign language" , "Indonesian" , "Islanders" .)