Police said Friday that Joseph Michael Malone was detained the day before in Pecatu village after guards reported suspicious activity on the beach. He owns two houses in Bali and is from Salona Beach, California.
Police spokesman Col. Gde Sugianyar Dwi Putra said police found 9.1 grams (0.32 ounces) of hashish in a box covered with cloth.
It was not clear when Malone would appear in court. He would face a maximum four-year jail sentence or a fine of about $88,700 if convicted of drug possession.
Indonesia has extremely strict drug laws and traffickers are regularly sentenced to death.