JAKARTA (REUTERS) - An Australian and a Briton residing on the resort island of Bali have been arrested on suspicion of possessing hashish, an offence that can incur jail sentences of up to 20 years, Indonesian police said in a statement on Sunday (Oct 9).

Police found 7.32 grams of suspected hashish at the residence of the 48-year-old Australian in Sanur. He led them to a 55-year-old Briton, who was found in possession of at least 10.09 grams of hashish, as well as a bong.

Both suspects have lived in Bali for five years according to the police.

Drug trafficking in Indonesia carried a maximum death penalty, and the country has faced widespread international criticism for executions of drug traffickers, including those of a group including two Australians in 2015 which went ahead despite repeated pleas for mercy from governments and international activists.

"For sure, we are building this case further to find the big dealer behind the origin of this (drugs)," said Gede Ganefo, head of the narcotics unit of the Denpasar police.

The two suspects have violated a narcotic law which carries a maximum 20 year of prison, Ganefo said.