Bali police say they suspect a further four children were sexually abused by an Australian man in their custody, and there may be more victims.
The 70-year-old man is accused of molesting the children over the past four years, luring them with small gifts like shoes, toys, clothes and cash.
Bali police spokesman Hery Wiyanto says statements will be taken from the further four children, bringing the number of suspected victims so far to eight.
"These victims are not school children, but children who are working in the market," he said.
"When he met them, he asked the victims to come with him and promised them something."
The suspect has been given a health check and police are coordinating with the Australian consulate to find him a lawyer and translator before questioning him.
The Australian man's arrest followed a tip-off by a foundation for Bali street kids, called Lentara Anak Bali.
Founder Luh Putu Anggraeni said they became suspicious about his frequent visits in 2011.
The foundation fears there are "many more" victims because found in the man's possession was a list of names, alongside the money he had spent on each child, "as if he was proud".
"These children have rights but now, they become the targets of sexual predators," she said.
"We don't want Bali children to be victims of paedophiles, this is the time for the judges to use the highest punishment.
"We want our children to be strong, not exploited because of poverty."
The man faces abuse charges carrying a maximum 15 years' jail.