Gede Wijaya, owner of Uncle Benz Caffe in South Kuta District, has been charged with murder and could face a prison term of up to 15 years if found guilty, police said on Sunday, according to the Indonesian media.
Wijaya told the police that he did not intend to kill the Australian tourist but was only defending himself.
He claimed the tourist came to his café around 7:30 p.m. on Wednesday. After drinking liquor, the tourist began to get drunk and threw bottles on the street. The two then got into an altercation.
Police said that Wijaya allegedly grabbed a chair from the tourist's hand and hit him on the head, causing him to fall down with severe head injuries.
The Indonesian police allege that Wijaya was also drinking alcohol at that time.
The Australian tourist was on vacation in Bali with his wife and sister. They were staying at the Villa Monyet, which is not far from Uncle Benz Caffe.
The tourist was discovered unconscious near the café at about 4 a.m. on Thursday by his wife. He was declared dead on arrival at a local hospital.