An Australian facing deportation from Indonesia says the army and immigration officials are trying to save face.

Mick Pedlow is being accused of mining for gold but claims corrupt authorities are trying to save face over their bungled attempts to stand over him and a co-worker.

Mr Pedlow says he and a friend had been setting up a water drilling operation to service a number of building developments.

The Indonesia resident has accused the local army of acting against him when he declined an offer it made to supply labour and building materials.