The alleged incident left a person in hospital and prompted residents to threaten to burn the Moon Beach Resort down on the island of Simeulue, off the coast of Sumatra.
Risby-Jones has been named as a suspect by police and faces up to five years in prison if he is convicted.
The province enforces Sharia law, meaning the sale and consumption of alcohol is banned.
Simeulue police chief Senior Commissioner Jatmiko – who, like many Indonesians, goes by one name – said the victim’s wife had made a report to police and four witnesses had been questioned.
Jatmiko said Risby-Jones was being detained at Simeulue police station and would face court.
He confirmed the Queenslander would not be deported.
An Indonesian police report stated two residents of Lantik Village were about to buy cigarettes at a stall when a “foreign citizen” appeared from a ditch and chased them.
“They accelerated their motorcycle towards a coffee shop, the perpetrator chased them while rampaging so that local residents were frightened, the perpetrator also lifted a motorbike, causing a local resident (to fall) off and (be) injured,” the police report said.
The report said Risby-Jones also hit the wall of a coffee shop.
“Perpetrator’s action provoked the anger of the residents, then they chased and caught the perpetrator,” the report said.
The residents brought him to a local police station.
According to the Sydney Morning Herald, Jatmiko said the Queenslander had been drinking from a bottle of vodka before emerging without clothes after midnight.
Officers said a half-empty bottle was found but Risby-Jones told them he hadn’t been drinking.
“He got out of his room naked. The security man attempted to stop him but got hit at the neck and fell down,” Jatmiko told the Sydney Morning Herald.
“He then went on to the street and disturbed passers-by. He hit almost everyone who was on the street.”
The police report said the local victim suffered injuries to his feet and received 50 stitches in hospital.