Eight police officers, including the head of the detectives and the Kuta police station chief, have admitted being involved in a scheme to extort money from a group of Australian men attending a bucks week on Bali.
So far 12 people had been investigated, Bali provincial police spokesman Hery Wiyanto said on Friday.
The plot was initiated by the head of the detectives unit and the police station chief, who had been in the job just four days, was persuaded to go along, he said.
Four of those investigated were cleared of wrongdoing.
On Thursday, a number of the men were made to stand in the sun at the Bali Provincial Police compound for a number of hours to embarrass them.
Reports in June said the 16 men were on the last night of a five-night bucks celebration in Seminyak when security broke up the party in a private room of an upscale restaurant.
Bali police began an internal affairs investigation into claims officers threatened the Australians with indecency charges if they didn't cough up about $25,000 in bribes after a stripper was found at their party.
The Melbourne men claimed a violent fight broke out in which they were pistol-whipped and tasered.
Indonesian authorities in Australia apparently asked Bali Provincial Police internal affairs to investigate claims that two of the men were escorted to ATMs to withdraw $25,000 in cash, or else face 10 years' jail for indecency.
On Tuesday, Bali Provincial Deputy Police Chief, General Nyoman Suryasta, told reporters seven officers had been implicated in the alleged extortion, though the extent of their involvement had yet to be determined as investigations continued.
"We will take strict measures. This has already tainted the organisation's name, especially the Bali Provincial Police," General Nyoman said.
When asked if the extortion had happened General Nyoman replied: "Correct."
He confirmed that admissions had been made but the sum of $25,000 had not been admitted.
"Only lots of (money) bills. What's clear, they have violated the ethical code. It's unjustified."
General Nyoman said an internal affairs trial date would be set.
The heaviest penalty for violation of the professional ethics code was expulsion from the force and the lightest penalty was an apology, he said.
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