Indonesian police have reported the arrest of a 39-year-old Iranian charged with smuggling asylum seekers.

The suspect is accused of using a boat that recently sank off the Indonesian coast, killing 10 asylum seekers.

The police say the Iranian suspect was paid by the asylum seekers to take them from Indonesia to Australia.

The boat, described as old and unsafe, was overloaded with passengers and capsized an hour into its journey.

Meanwhile, Australian authorities reported on Tuesday that they have arrested 116 asylum seekers found crossing their border in another boat. The passengers were reportedly sent to Christmas Island for security and medical checkups.

This is the second large group of asylum seekers to arrive in Australia by boat this year. The Australian government has proposed a bill to allow immigration officials to send asylum seekers to Malaysia while their cases are processed.