In 2005, Chen was arrested in a room at the Melasti Hotel in Kuta together with three others.
Police uncovered 334 g (11.8 oz) of heroin in a suitcase in the room.
After a criminal trial, on 15 February 2006 Chen was sentenced to life imprisonment.
His appeal to the Indonesian Supreme Court to have the sentence reduced suffered a shock when the Supreme Court imposed the death penalty on 6 September 2006.
A subsequent appeal to the Indonesian Supreme Court, following a full confession by Chen to his role in the plan to import heroin from Bali to Australia, resulted in the original sentence of life imprisonment being reinstated.