An Australian tourist was arrested after he sparked panic by rampaging through a local's house in Bali.

The Aussie, identified by police only by the initials RI, 40, was said to have been 'high on magic mushrooms' when he barged into the rented home of Chairul Agus Suparino, 31, in Denpasar at around 8 am local time on November 18.

The startled homeowner screamed upon seeing the foreigner, calling the attention of neighbours who immediately confronted the shirtless holidaymaker.

Video shows baffled residents talking to the seemingly dazed man as he sat half-naked on the neighbourhood street. The man said he arrived in the area on a rented motorcycle taxi.

AKP Ketut Sukadi, head of public relations for the Denpasar Police, said: 'At around 13.00 WITA, it was reported that a foreigner had entered a resident's rented house in a daze.

'Then he was directed to be taken to the Kuta Police. After being cross-checked at the Kuta Police, he was handed over to the Badung Satpol PP and he was suspected of being drunk and disturbing public order in the community.'

The residents were reported to have taken pity on the confused tourist because of his dishevelled appearance. They bathed him and took him to a hotel in the Kuta area of Badung Regency, where he claimed to have been staying. However, hotel staff said the man was not on the guest list.

Police said he will be taken to a hospital for treatment.

Head of Badung Satpol PP I Gusti Agung Ketut Suryanegara said: 'He is an Australian citizen and he did not bring any identification. He had difficulty remembering where he lived. He was in a dazed condition and we are waiting for him to become lucid.

'He admitted that he had consumed mushrooms. In the meantime, we will take him to Prof Ngoerah General Hospital for treatment.'

Magic mushrooms, which contain the psychoactive compound psilocybin, are illegal in Indonesia. However, enforcement is lax and they are sometimes openly advertised and sold in tourist areas like Bali and the Gili Islands.

The Australian's arrest is the latest incident involving misbehaving tourists on the bustling holiday island in Indonesia.

Officials have even taken steps to reign in the chaos following complaints from police and residents about tourists disrespecting the culture, violating traffic rules, committing crimes and behaving badly in public.