9News understands that police have claimed they found 0.82g of the drug in Nicholas Lee’s villa Tuesday night after raiding the property.
The 50-year-old from Western Australia has been accused of buying the drugs in Kuta for around $ 150.
He now faces 12 years in prison if convicted.
Lee, from Perth, had been in Bali for only two weeks, visiting Papua New Guinea, where he works in mining.
Representatives say he is desperate and apologizes to family and friends.
Attorney Edward Pankahira said Mr Lee was outraged by his decision and apologized to his family and friends, local media reported.
“He said he had stopped using (stimulants) for four years … When he came to Bali, he started doing it again,” Mr Pankahira said.
“He is very (sorry) about the situation.”