Leeza Ormsby could be detained for 40 days in a Bali police cell without being charged, but police say the drugs case against the NZ woman is strong.
Ormsby, 37, was formally questioned on Thursday night, 16 days after she was arrested at a drug raid on a villa north of Kuta.
Her lawyer Ari Soenardi says she was cooperative and calm through the five-hour process.
His client has admitted to owning a marijuana joint that was in her handbag, but Mr Soenardi says she has no knowledge of the MDMA and hashish found in the villa, which she was only visiting to pick up her towel and laptop.
"The police are still trying to link Leeza with the others," he said on Friday.
"That's police business. We're only focusing on Leeza with the evidence she has admitted to."
Chief of Denpasar's drugs squad, Agus Tri Waluyo, says police have the right to detain the New Zealander for 20 days, but can extend this to 40 days if needed.
"We actually want to finish documenting this as soon as possible, but it all depends on what develops," he said.
"So far, the suspect has fulfilled strong elements for the crime."
At the raid, Ormsby told police there had been a party at the villa, but that her five friends had already left Bali.
Sydney musician Azaria Byrne, has since come forward to say he was the one who booked the villa, and that he believes the woman whom he only met once is innocent.
Another has been identified in media reports as Sydney DJ and Ormsby's ex-lover Marco Mazzucco, who witnesses say was questioned by police but allowed to return to Australia.
Major Waluyo would say only that police were focusing on Ormsby and "a number of other witnesses".
"If there's a development ... we'll certainly follow it up by coordinating with Interpol," he said.
Electric scales, tape and plastic wrap were also seized from the Canggu villa.
Police could charge Rotorua-born Ormsby with drug distribution, an offence that carries a maximum 20-year jail term in Indonesia, or possession, which carries a penalty of between four and 12 years' jail.