The Bali Nine's Renae Lawrence will escape serious punishment over an alleged prison murder plot, with the convicted drug mule only being banned from receiving sentence cuts for at least 12 months.
Lawrence, from Newcastle, was moved from Kerobokan jail to another prison in Bali on Saturday amid accusations the 36-year-old had conspired with another inmate to murder two female prison guards.
But Kerobokan jail governor Gusti Ngurah Wiratna confirmed on Tuesday that he would not recommend to police that she be charged.
"She will not be getting remission for at least one year," Mr Wiratna told AAP.
"For the time being, I think the sanction of not getting her remission and sending her to a remote prison - that should be enough."
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The police have said they were unlikely to take any independent action.
"Several charges can be laid, like unpleasant conduct, or threat of life," North Kuta Police Chief Reinhard Habonaran Nainggolan, whose office has jurisdiction over Kerobokan, told AAP.
"This case is actually within police domain, especially when there's already enough evidence, including the plan to murder and the knife.
"But since it's still only a plan, we decided to wait for official report from the prison."
The alleged plot came to light last Thursday following the discovery of phone text messages between Lawrence and the other female prisoner, Joaninha Maria Sonia Gonzales, during a raid on the women's cell block which had been prompted by reports of a drug party.
A blade was found in Lawrence's cell while a "commando knife" was discovered in the cell belonging to Gonzales.
"Use the knife, use the metal chains," a message from Lawrence to Gonzales said, according to Wiratna.
Gonzales, also known in the jail as "Black Sonia", allegedly responded with: "I will do anything you say. I am used to being in and out of prison. You only die once."
Mr Wiratna on Tuesday conceded there were problems with drugs in the prison, revealing a recent bust where 1kg of cannabis was found stashed in the ceiling of a cell.
However, he said he did not believe the alleged murder plot was related to the drugs trade inside the jail.
"We're not denying that (drug use in the prison) exists. There are many ways they're using to smuggle it in, including putting drugs inside a baseball ball, and in instant noodle packets brought in by visitors," Mr Wiratna said.
"Even recently, we found 1kg of marijuana hidden on cell ceiling.
"But with Renae, I don't see her problem linked with drugs regarding this murder plot."
Lawrence, the only female member of the Bali Nine, is serving 20 years for her part in a 2005 plot to smuggle more than eight kilograms of heroin from Bali to Australia.
