An Australian man who could face the death penalty in Bali for allegedly attempting to smuggle cocaine into Indonesia has been identified.

Lamar Ahchee, a 43-year-old business manager from Cairns, was arrested on Thursday after allegedly receiving two suspicious packages from the United Kingdom while staying in Bali.

The cocaine was allegedly concealed inside two Gold Lindt chocolate boxes, each containing 54 individual packets of the drug, with approximately 8.3 grams wrapped inside each one.

Bali Police Chief Inspector General Daniel Adityajaya said that the packages arrived in Indonesia on May 12.

When the packages arrived at the Renon Main Post Office, customs officers at Ngurah Rai Airport scanned them using X-ray equipment and suspected they contained narcotics.