An Australian teenager has been arrested in Bali after allegedly being caught with a packet of white powder at a Kuta nightclub.
The 18-year-old, who is reportedly a schoolie, was detained at the nightclub Skygarden on Tuesday around 1am local time and held overnight, according to authorities.
Nine News have obtained footage of nightclub security pulling the teen aside and the white substance being found in his waist bag. The teen is heard protesting his innocence saying "it's not mine".
Kuta Police Chief Commissioner Wayan Sumara told Australian Associated Press the Perth teenager will remain "locked up" until the white substance is tested and confirmed.
Police suspect the the substance is cocaine or heroin, according to Fairfax.
"He [the Australian] said he got it from one of the people on the street," Mr Sumara told reporters.
"We will check with his group whether he is part of schoolies or not."
The punishment for possessing illicit drugs in Bali can be severe, with offenders facing up to 12 years in prison and fines ranging up to $800,000.
The 18-year-old reportedly arrived in Bali on Sunday.
Balinese police have warned young Aussies arriving celebrating schoolies in Bali to stay away from drugs and criminal activity. No charges have been laid against the 18-year-old while authorities wait for the substance to be tested.