As many as 60 asylum seekers are missing or fear dead after a refugee boat capsized in heavy seas off the south coast of Indonesia near Java.  Up to 170 people could have been on board the vessel.

The Australian Maritime Safety Authority (AMSA) says a rescue operation was underway, but Indonesia has yet to accept our offer to assist.

"Indonesian authorities are coordinating the rescue of that incident. AMSA is not involved at this stage," an AMSA spokeswoman said.

The asylum seekers are believed to be mostly from Afghanistan, Iraq, Iran and Sri Lanka.  The boat had set out from Indonesia after Kevin Rudd announced a new policy under which all future asylum seekers would be sent to Papua New Guinea and have no chance of being settled in Australia as refugees.