Arsain bin Anwar, an Indonesian national who lives in Malaysia, was arrested on Friday with 2.5 kilograms of the drug in his luggage, airport customs chief I Made Wijaya said.
Under Indonesia's tough anti-drugs laws, he could face the death penalty if convicted of smuggling that quantity of drugs, he said.
However Anwar has claimed he had no idea he was transporting drugs and was paid only USD 62 to carry a package, the official said.
According to Wijaya, Anwar said he only accepted the money because his wife was ill and he needed to cover medical costs.
Anwar, who is originally from East Java province in western Indonesia but had been working in Malaysia for 30 years as a car washer, arrived in Bali on a Malindo Air flight from Kuala Lumpur, said the official.
The drugs have a street value of USD 440,000, said Wijaya. He added that customs officials received intelligence that Anwar may be carrying drugs before his arrest.
Several foreign convicted traffickers are in jail in Bali, including British grandmother Lindsay Sandiford.
She was sentenced to death last year after being caught at the island's airport with USD 2.4 million worth of cocaine in her luggage.
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