Aussie man arrested for alleged cocaine possession in Bali

An Australian man has been arrested in Bali for alleged cocaine possession, police say.

Nelson Philip James, 33, from Lismore, NSW, was detained by Indonesian police on Thursday after he was allegedly found with cocaine during a traffic stop at Badung.

WATCH THE VIDEO ABOVE: Aussie man arrested for alleged cocaine possession in Bali.

The man and his female passenger were reportedly pulled over for not wearing helmets while riding a motorbike.

Badung police chief Arif Batubara told reporters that James was “acting nervous and initially refused to show documents”.

“During a traffic inspection on June 11, police were observing a traffic violation at the Pererenan area, Tanah Lot,” Batubara said.

“He was acting nervous and initially refused to show the documents. When asked again for his paperwork, he took out his hand and a plastic clip fell out of his pocket, but one plastic was still on his hand.

Video from the arrest has surfaced online, appearing to show James offering an excuse for the suspicious parcel.

“Try it, it’s Panadol. Panadol brother,” James shouts in the video. “Test it, it’s Panadol.”

Police claim James later confessed the white powder was cocaine.

“According to (James), he bought the drugs in Ungasan on June 9. Details of the purchase are still being investigated,” Batubara said.

The Department of Foreign Affairs and Trade confirmed that an Australian had been detained in Bali.

“We are in contact with local authorities and stand ready to provide consular assistance, to any Australian citizen, should they request it,” a DFAT spokesperson said.

- With AAP