An American man was arrested by Indonesian authorities after allegedly "beheading" his father-in-law after a fight over the family business.

Arthur Leigh Welohr, a 35-year-old man from San Francisco, was arrested in Banjar, West Java, Indonesia, in connection to the stabbing death of his father-in-law, 58-year-old Agus Sopiyan, according to a report from Viral Press.

The incident happened Sunday after a verbal altercation broke out between Welohr and Sopiyan, who were teaming up on a business venture that was reportedly failing, according to the report. Neighbors told Viral Press that they could hear shouting but dismissed the situation as a normal argument.

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But the argument eventually escalated into a physical altercation, with Welohr allegedly attacking his father-in-law, overpowering him and knocking him to the ground before stabbing him with a knife.

Welohr was eventually subdued by local witnesses, who held the American at the scene while awaiting the arrival of police.

Video from the scene reportedly showed Sopiyan's head hanging from his shoulders after the incident, with police saying that the father-in-law was found in "terrible condition" behind his house with his head severed from the neck.

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"The neighbors here initially thought it was just an ordinary argument. But it turned out he pushed and slit his father-in-law's throat," a witness named Rizal told Viral Press, adding that witnesses failed to intervene because the verbal altercation escalated too quickly.

Nandi Darmawan, the head of public relations for the Banjar Police, told Viral Press that a suspect in the case "has been arrested" but said the incident is still under investigation.

"We will convey the results of further investigations when all the investigations have been completed," Darmawan said.

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Yayat Ruhiyat, the chief of the Raharja Village where the incident took place, told Viral Press that Welohr had a history of confrontation with his father-in-law and had even allegedly vandalized his house, though he was never arrested for "various reasons."

"The police did not make any arrests until this incident occurred," Ruhiyat said, adding that Welohr's wife had paid for the vandalism damages to her parents home.

According to Banjar Police Chief of Investigation AKP Ali Jupr, Welohr told police that he carried out the attack because he felt that his father-in-law had been hindering his relationship with his wife.

"He felt that he himself was being attacked and finally carried out the killing," Jupr said.