Australian woman Sara Connor and British man David Taylor arrested by police investigating murder on Kuta beach

Sara Connor is being held for questioning regarding the brutal murder of a Balinese police officer on Kuta Beach. Photo / Facebook

Australian woman Sara Connor has told police in Bali that on the night a policeman was murdered she was on a beach date with Brit David Taylor but was drunk and cannot remember anything.

Last night, shortly after Connor and Taylor handed themselves into the Australian Consulate and were taken in for questioning, the Byron Bay woman was interrogated by the Bali Police Chief.

Sr Comr Sugeng Priyanto said after questioning the pair, that both Connor and Taylor had wounds on their hands.

"She said that at the time she was drunk. So she did not remember all the things that happened that night ... meanwhile the man, David Taylor, a Brit, is yet to give a statement. He said he wants to wait for a lawyer," Mr Priyanto said.

He said the pair was on the beach and that Connor has said she lost her bag on the beach on the night.

David Taylor, who has been held in Bali over the death of a Balinese policeman, pictured in Sydney. Photo / Supplied

Mr Priyanto said that Taylor indicated he had received wounds on his hands in Italy and that wounds on Connor's hands were covered with Betadine.

"We have questioned nine witnesses. The result of questioning the witnesses and evidence found at the crime scene lead to these two people."

Sara's close friend from Byron Bay, Avishay Biton, was shocked last night to hear news his friends had been arrested.

"That's a big shock to me," he said. They're both so nice, it doesn't make sense.

"I'm worried for my friends."

Indonesian police officers escort murder suspect David Taylor, center, as he covers his face. Photo / AP

Police revealed late yesterday that Connor and Taylor were alleged to have been spotted on the beach at the time the officer was killed.

And they allege that Taylor was seen several times by witnesses on the night of the murder with what appeared on be blood on his shirt.

Blood was found in the hotel room at the Kubu Kauh Beach Inn where Connor and Taylor were staying.

An autopsy yesterday revealed that police officer Wayan Sudarsa suffered 17 open wounds to his head after being repeatedly struck with a blunt object, possibly a beer bottle, and left to die in the sand.

Connor's ex-husband Bryon Bay bartender Anthony "Twig" Connor was in shock his ex-wife was being sought after for questioning by police after her driver's licence and ATM card was found in the sand at the murder scene.

Mr Connor said could not believe she would be "caught up" in the crime after she travelled to Bali last week.

Connor's two small boys now face an anxious wait for their mum.

"I don't think she's even caught up in it to be honest," Mr Connor said.

Police had initially named Tomas Schon as a person they were also seeking to interview but have now said he is not involved.

Avishay Biton, 29, said Connor was a mum who loved her kids first and foremost.

"Sara is always the one dancing at our parties," Mr Biton said.

"Our group get together and we always have a good time. Sara and Tomas are such beautiful people, there's just no way they had anything to do with this," he said.

"She loves her kids. I just want to make that really clear. They're both beautiful people and I would to my core be shocked if they were involved. I'm so worried about them."

Ms Connor's business partner at Byron Bay Fresh Pasta, Michael, said she had left last week to go to Bali for a one-week holiday.

"She went on holiday for this week ... the kids are still here with their father.

"She's just gone on holiday and gone for a week to visit this guy.

"He was leaving here and going back to England because he didn't get the tourist visa.

"She's a normal person."

"We're worried sick about her," he said.

Taylor, who was previously living in Byron Bay, works as a DJ, known as "DJ Nutzo", and a brewery hand, according to his social media profiles.

The 33-year-old, originally from Halifax in the United Kingdom, regularly posted about playing "phat funky beats" and "pounding bass to sooth your soul" on when promoting his work at a radio station.

Denpasar Police Chief, Sr Comr Hadi Purnomo said a witness had seen Taylor with what appeared to be blood on his clothes, trying to get a motorbike taxi near the scene but the driver had refused to take him because of his dishevelled appearance.

The dead officer was on night shift, working from 8pm to 8am, tasked to work in front of the Pullman Hotel area.

Police now have 24 hours to decide whether to name the pair as suspects or not.

Additional reporting by Lexie Cartwright and Ashleigh Gleeson