JAKARTA (AFP) - Two men have been arrested over the murder of an elderly Dutch man whose decomposing body was found at his home on the Indonesian holiday island of Bali.

The corpse of Robert Gilhooad, 80, was found on Nov 3 at his rental property in Jimbaran, a resort area in the southern part of the island.

An autopsy concluded the Dutch expatriate had been murdered, said policeman Aris Purwanto, the region's criminal investigative chief.

"He had injuries to the left of his head," he told AFP, adding that the perpetrator had used a steel object.

Two suspects have been detained in connection with the crime, Purwanto said, without providing names.

Police believe there was a monetary motive for killing Gilhooad, a long-term Bali resident who lived alone.

The murder is the second in as many months in Jimbaran, a fishing village famous for its seafood restaurants.

An elderly Japanese couple were found slashed and burned beyond recognition at their home on Sept 4.

Petty crime is common on Bali, a popular tourist destination known for its tropical climate and palm-fringed beaches, but grisly murders are rare.