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One man was arrested in Jakarta and another was caught making his way there, local police confirmed today.

The shooting initiated a nationwide search in Indonesia following the death of Melbourne resident Zivan “Stipe” Radmanovic, 32, who was shot shortly after midnight on Saturday.

The tropical paradise was shattered by gunfire on Saturday, killing 32-year-old Zivan Radmanovic in a hail of bullets. (9News)

Sanar Ghanim, 34, was also shot and beaten in the attack.

Ghanim, who previously was involved with Danielle Stephens, the stepdaughter of slain underworld figure Carl Williams, was discharged from the hospital and relocated to a new apartment in Canggu today.

Radmanovic died at the scene and was reportedly shot four times while his wife hid under the covers in the bedroom next door.

Doctors are still awaiting consent from Radmanovic’s family to proceed with an autopsy.

The gunmen fled the scene and one was reportedly heard speaking in an Australian accent.

One man was arrested in Jakarta and another is overseas but is headed back to Indonesia. (Nine)

Police suspected they had fled Bali but remained in Indonesia.

The fatal shooting is being treated as an organised hit.

Offenders arrested on Indonesian soil face the death penalty.

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