The Denpasar District Court erupted with shouts from the public gallery as its three-judge panel announced its verdict of "hukuman mati" or death penalty.
Judge Arief Supratman, reading out the verdict, said the 21 year old was "guilty of illegally exporting first-class narcotics in an organized way."
Chan sat quietly beside a court translator for the verdict.
The sentence of death was in line with prosecutors' recommendations.
The defendant, Judge Supratman added, was also "the person who made the travel arrangements for several people from and to Australia."
"According to the teachings of various religions, the death penalty can be justified," Judge Supratman said.
Chan shook hands with his lawyers briefly before being led out by police from the packed courtroom and through a scrum of reporters and cameramen.
He is the first of the group to receive the death penalty.
Czugaj gets life in prison
In a separate courtroom a three-judge panel took less than an hour to read out its judgment and convict Michael Czugai , 20, Brisbane man of trying to smuggle heroin from Bali to Australia on April 17 last year.
They said he had been found convincingly guilty of the primary charge of smuggling.
Czugaj sat with a passive expression on his face as the verdict and sentence was read out, holding hands his parents, Stephan and Vicki.
He was then rushed to a holding cell at the rear of the court where he put on dark sunglasses and then tried to hug his mother through the cell bars.
Czugaj was arrested at Bali airport with 1.75kg of heroin strapped to his body in three bags.
The sentence against Czugaj was in line with the demands of Indonesian prosecutors.
On Monday fellow drug mules Renae Lawrence and Scott Rush were also jailed for life.