The Indonesian security guard who demanded $20,000 compensation from the Sunshine Coast "toolie" who allegedly punched him outside a Burger King in Bali's vibrant Kuta district has reportedly backflipped on his pricey demand.

Adni Junus Liu is now believed to be seeking only costs for hospital treatment he required over cuts to his head and face that Queenslander, Zac Whiting, 18, is accused of causing.

Australian troubleshooter John MacLeod - who was once Schapelle Corby's security consultant - is representing Mr Whiting, and is currently in peace negotiations with Mr Liu over the alleged attack.

"It's still a work in progress. We have to go through the process. It's a legal system that can't be overrun and we are working through it, and we'll submit another document shortly and talk to the police. We have an agreement with the victim," Mr MacLeod said.

"If this case goes to court, it will be a problem for the victim by asking for a very unreasonable compensation," added Sienny Karmana - another of Mr Whiting's Indonesian

legal team.

Mr Whiting, an up and coming AFL player and tradie's assistant, is accused of punching Mr Liu twice in the face with a clenched fist in the early hours of Friday morning.

It is alleged the teenager argued with a taxi driver over a missing mobile phone that reportedly belonged to one of his friends when the security guard intervened.

Mr Liu claims that Mr Whiting then tried to make him responsibile for the lost phone and subsequently assaulted him.

The teenager was on holiday with friends for a "toolies" break, where non-school leavers gatecrash the annual schoolies party in Bali.

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Mr Whiting, who is heading into the fifth day of his Bali nightmare, has now been moved to the second floor of the Kuta lockup with just three plastic bags of clothes.

Mr Whiting's Indonesian lawyer, Edward Pangkahila has confirmed that Mr Liu had demanded a peace agreement with a $20,000 compensation price tag attached.

"We are still negotiating with the victim. He asked for IDR200 million ($20,000). We can only give him 15-20 million ($1500 to $2000)."

Kuta police chief Teuku Ricki Fadlianshah said he had not yet received a proposed peace agreement.

"When we receive it, we will study it first then there will be an internal meeting to determine this case. After that we will decide to progress," Mr Fadlianshah said.