A Spanish retiree was found murdered months after she was reported missing on a tourist island in Indonesia.

Maria Matilde Munoz Cazorla, 72, was buried in the sands of Senggigi Beach, just half a mile away from her hotel on Lombok island, on Saturday.

Police arrested two men, identified only by the initials SU, 34, and HR, 30, who allegedly admitted to murdering the pensioner to steal her valuables.

Lalu Eka Arya Mardiwinata, head of the West Lombok criminal investigation unit, said in a statement the suspects were both residents of Senggigi town.

He said: 'The two admitted to planning the victim's murder. They entered the victim's room through a window. Their goal was to steal her belongings.'

Police said one suspect had pinned the pensioner down on the bed while the other smothered her to death with a towel. They then buried her body at Senggigi Beach undetected, sparking suspicions that hotel staff were complicit in the alleged murder.

Matilde's body was taken to the Bhayangkara Regional Police Hospital for examination.

AKBP Yasmara Harahap, chief of the West Lombok Police, said: 'The suspected perpetrators will be punished in accordance with Article 340 of the Criminal Code for premeditated murder, or Article 338 for murder, in conjunction with Article 365 paragraph 4 concerning theft with violence causing death.'

Both men, both 'closely linked' to the Bumi Aditya Hotel where Matilde stayed, were remanded in custody as authorities vowed to investigate the case, including any possible connections with hotel staff.

Matilde, a long-time resident of Mallorca in Spain, was a retiree who frequently visited Asia. She was reported missing on July 2, after failing to contact relatives despite being known to update them frequently.

However, her furious family slammed the inaction of local police, who allegedly only launched a formal investigation on August 13, after prodding from the Spanish Embassy.

Belongings including her clothes, sandals, books, and a backpack were later discovered in the hotel's trash, though her passport, bank cards, and phone were missing.

Police said the probe led to the two suspects, who were tracked down by the West Lombok Police and the Batulayar Police.

Matilde's nephew, Ignacio Vilarino, said: 'It's not just the two of them, there are more people involved , we absolutely believe that.'

Matilde's friend Molly Holland Willows added: 'I have no words. But I will try.

'I know you have returned to infinite love and you are free but my heart is just broken. Thank you for your gift of electric presence. You showed me the here and now, and through that you opened up my whole universe. I am so grateful for you and your adventurous, restless rainbow nomad soul.

'Om shanti, Matilde. Go free in eternal peace and power and know that I love you from the bottom of my heart forever. Big hugs to everyone around the world whose life you inspired and anyone who is also feeling the deep pang of your sudden disappearance from this dimension.'