Ormsby's arrest comes just days after Australian drug smuggler Schapelle Corby was released on parole after spending nine years in Bali's notorious Kerobokan Prison.
Corby, now 36, was convicted in 2005 of importing 4.2kg of marijuana into Bali in a boogie board bag.
She was sentenced to 20 years but had her time reduced.
Under Indonesian law, all of the substances allegedly found on Ormsby are classed as the equivalent of New Zealand's Class A drugs and carry the stiffest penalty.
Anyone convicted of possession faces four to 12 years' imprisonment and fines of up to $820,000. However, for more than 1kg of "raw" drugs such as marijuana or more than 5g of "processed drugs" including methamphetamine, a maximum sentence of life imprisonment can be imposed.
Traffickers face between five and 15 years' jail and fines of more than $1 million. The death penalty may also be imposed.
Australia's 9 News reported that Ormsby's name and photo appeared on arrest documents.
The Herald understands Ormsby is from Wellington but has lived in New South Wales for many years. She also goes by the surname Morrison.
The Ministry of Foreign Affairs and Trade is aware of Ormsby's arrest.
"The consul from the New Zealand Embassy in Jakarta is providing consular support and has visited the New Zealander," it said in a statement last night.
"The embassy's role is to monitor the New Zealander's welfare and ensure that they have the same rights as other detainees in Indonesia."
The statement said neither Ormsby nor her family wanted to speak to the media about the charges.
- Additional reporting APNZ
