An Australian teenager, thought to be a school leaver in Bali, could face up to 12 years in jail after he was allegedly caught with a small packet of white powder by security guards at a Kuta nightclub.
Jamie Murphy from Perth was detained some time after 1am local time on Tuesday at the nightclub Skygarden.
The 18-year-old was held overnight at Kuta precinct.
Kuta Police Chief Commissioner Wayan Sumara said a white crystal substance was found on the teen but it is yet to be confirmed what it is.
"The evidence is still being tested," Mr Sumara told reporters. Police suspect it is cocaine or heroin.
Mr Murphy will remain "locked up" until the substance is confirmed. He has been subjected to urine and blood tests to see if he consumed any of the substance.
"He [the Australian] said he got it from one of the people on the street," Mr Sumara said. "We will check with his group whether he is part of schoolies or not."
It is believed Mr Murphy arrived in Kuta on Sunday with two friends.
Nine News Perth reported the teen being detained was caught on camera.
Footage appears to show the teenager being held in a tight grip by a security guard, pleading with him and professing his innocence.
"No, I haven't taken it," Mr Murphy can be heard saying. "It's not mine...what are you doing, it is not mine.
"This is a f---ing show. I don't do this sh--t, I only drink."
Nine News reported the teenager was searched when he entered the nightclub and the security guards discovered the white powder in a waist bag.
It is understood the man could face up to 12 years in prison and an $800,000 fine if he is convicted with possessing illicit drugs.