Videos that have gone viral on social media showed Darja Tuschinski walk around dancers performing at the Saraswati Hindu temple in Ubud.
The 28-year-old also tried to enter the shrine's inner sanctum before being prevented by a security guard.
The police said she had a squabble with staff members at the event before undressing and interrupting the dancers, Indonesia's Antara news agency reported.
She was sent to a psychiatric hospital in the town of Bangli after refusing to board a flight home.
The police also said she failed to pay bills at several hotels during her stay on the island.
Famous for its beaches and ancient temples, Bali has become a top tourist destination in recent years thanks to its generous visa policies.
It has been cracking down on foreigners violating public order following a recent string of untoward incidents.
Immigration authorities have deported 123 people in the first five months of this year, most of them for overstaying their visa.
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