There are now unconfirmed reports police in Bali will release 18 year-old Australian Jamie Murphy, after a bag of white powder allegedly discovered in his bag, was found to not be an illicit drug.
His lawyer has indicated drug tests have cleared him of suspicion.
Under Indonesian law, anyone convicted on drug possession or misuse of drugs could face between four and 12 years in prison.
Mr Murphy has protested his innocence from the moment of his arrest, which was captured on video.
Heading into Bali's Skygarden nightclub, in the popular Kuta tourist district, bouncers searched him at the door.
The shocked Perth teenager was then manhandled by police, after a security guard discovered a bag of white powder in his posession, thought to be cocaine.
He was forced to look at the camera by the arresting officers.
"What are you doing? It's not mine! I don't do this (bleeped), I only drink."
Despite being told to stay away, his parents flew from Perth to Bali to be with their son, telling media they had no comment on the situation at this time.
Friends have expressed their shock over the arrest, saying Jamie Murphy was a promising football player, with a possible future in the A-League, having trialled for Perth Glory.
Foreign minister Julie Bishop says Australian consular officials have lent their support throughout the process.
"Under Indonesian law people can be held for up to three days. They can be detained for a further three days while investigations are carried out and then a decision is made whether to charge someone or not."
One of Jamie Murphy's friends from school disputes the nightclub bouncer's find via a widely circulated social media post.
A facebook post from Mr Ty Airey, which shows video from Channel Nine of the police searching Mr Murphy, he says 'the cocaine bag is in the security's hand BEFORE' he opens his bag, claiming the video shows he was set up.
One of the two bouncers that discovered the poweder has denied this, telling an Ausralian newspaper the video was a re-enactment, taken at the police station to show how the drugs were found, not the moment they first searched Mr Murphy.
Schoolie travellers at Perth airport said they were very aware of the police crackdown in Bali.
"Ah I think we're all a bit nervous, a bit wary of what's going to happen. We're going to have to watch out to make sure nothing really happens to us."
"I'm kind of afraid like, I've heard that they've, like, set him up so I don't want that to happen at all."
The government is repeating it's warning to travellers to be behave themselves overseas.
"When you travel overseas, you leave behind the Australian judicial system, the Australian support system, and you are subject to the laws of the country which you're visiting."
While the police crackdown goes on, the party continues for other schoolies in Bali.
Partygoers in the street who were asked about the arrest gave their advice to other school-leavers looking for a good time.
"I guess you need to be smart at Bali."
"Don't do drugs, have a good time, use protection, and get (bleeped) up! Woooooooooo!"
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