Forty Iraqi migrants are being questioned by Indonesian authorities after being found stranded on a remote island on their way to Australia, police said Saturday.

The Iraqis, including nine children, were picked up by police on Tuesday off southern Sumbawa island and are being fed and housed at police headquarters in the nearby town of Dompu, local police chief Giri Basuki told AFP.

`We found them on a small island, they were probably suffering from engine trouble,` Basuki said.

`They said they were heading to Australia to find work,` he said.

However, a spokesman for the foreign ministry said it was likely the Iraqis intended to seek asylum on reaching Australia.

`They are still being investigated and it seems asylum is the case,` Teuku Faizasyah said in a mobile phone text message.

Indonesia is a key staging point for asylum seekers headed to Australia from Asia and the Middle East, although only a small number of people attempt the risky boat journey every year.