By Jewel Topsfield and Amilia Rosa
A 63-year-old Australian man has been discovered dead in a house in the seaside Bali precinct of Sanur.
Police found Stephen James Richardson, who was born in Perth, lying covered in blood on a mattress at the Sanur property he was renting.
The Sanur residence where Stephen Richardson's body was found.
He was naked with cuts to his face and a wound to his shoulder.
Police, who finished questioning witnesses close to 3am Bali time on Tuesday, are investigating all possibilities - including murder - due to the "unnatural death".
Police outside a house in Sanur, Bali, where the body of an Australian man was found.
Mr Richardson's friend, Garry Croker, emerged from South Denpasar police station saying he was too upset to comment on Monday night.
His son, Ben Richardson, told Fairfax Media via Facebook he was trying to get what little sleep he could after hearing the news of his father's death.
Police found the body at 4.20pm local time on Monday after it was reported that Mr Richardson, who was renting the property, had not been seen for two days.
South Denpasar police chief Wisnu Wardana said a window had been broken in the Sanur home but ruled it out as a source of entry.
Garry Croker (left), a friend of the victim, outside South Denpasar police station after giving his statement.Credit: Amilia Rosa
"The scene was intact - no sign of forced entry has been found yet," Mr Wisnu said.
"The gate was locked, so was the door to the room where the body was found.
Police tape outside a house in Sanur, Bali, where the body of an Australian man was found.
"We are still investigating. Because of the unnatural death anything is possible at this point. We have our forensic officers investigating the scene."
An iPhone 5 was found near the body.
Police outside a house in Sanur, Bali, where the body of an Australian man was found.
The chief of Denpasar Police's criminal investigation unit, Aris Purwanto, said 10 witnesses had been interviewed.
Asked if the crime was being treated as a murder he said: "We have not determined anything yet."
"The investigation is still ongoing. We are still waiting for the result of the preliminary body examination."
Mr Aris said police had reached out to the victim's family via the Australian Consulate.
He said it was very late and the investigation would be continued on Tuesday.
"We might do another scene investigation, depending on what our forensic team need."
Mr Richardson's body has been taken to the morgue at Sanglah hospital in Denpasar.
The Department of Foreign Affairs and Trade said it was providing consular assistance, in line with the Consular Services Charter, to the family of an Australian man who died in Indonesia.
"For privacy reasons, we will not provide further comment," a spokesperson said.