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The 49-year-old’s lawyer told 9News that Smith tried to run from police before being arrested, with one officer firing a warning shot at the South Australian.
“He got the scar because he fell,” he said.
Smith has been in custody for almost two weeks and is accused of possessing more than three grams of methamphetamine in his resort room.
A smaller amount of 0.04 grams is alleged to have been in Smith’s possession when he arrived in Bali from Australia.
Possession of drugs carries a sentence of between one and 12 years in prison in Indonesia, while trafficking or importing can result in the imposition of the death sentence.
However, as Smith was allegedly found with less than five grams, it is understood he will not face such a harsh sentence and will instead face life in prison.
Balinese police addressed the media during a news conference, the first time authorities have spoken publicly about Smith’s arrest.
“Indonesia is very strict on drugs,” they said through a translation through Smith’s lawyer.
The Australian was absent from the press conference and his lawyer said he was mentally unwell and was expected to be admitted to hospital.
“Mentally he’s not well … he’s still fighting,” his lawyer said.
Smith was on holiday with his new wife Tracey, whose attempts to visit him in custody today were refused.
The Port Lincoln resident is cooperating with police as inquiries continue.
Formal charges are expected to be filed after police complete their investigation.
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