Asylum seekers in Indonesia have confirmed that some of them are asking people smugglers for their money back because of Australia's new PNG policy.

Australia has signed a memorandum of understanding (MOU) with Papua New Guinea to send asylum seekers to PNG to be processed and resettled there if they are found to be refugees.

News of the policy has reached Cisaura, in West Java, home to some of the thousands of asylum seekers stuck in Indonesia.

The ABC has learnt some asylum seekers have asked for their money back from people smuggling agents, and have succeeded in getting a refund.

Asylum seekers tell the ABC it is mainly Iranians who are asking for refunds and are reportedly preparing to return back to their country, not willing to take the risk of ending up in PNG.

But the PNG policy is still causing confusion among Afghan asylum seekers - some of whom say they will still try and come to Australia by boat.

PNG policy Asylum seekers who arrive by boat will never be settled in Australia

Asylum seekers who arrive by boat will never be settled in Australia They will be sent to Manus Island or elsewhere in PNG for assessment

They will be sent to Manus Island or elsewhere in PNG for assessment Genuine refugees will be resettled in PNG

Genuine refugees will be resettled in PNG The agreement will be in place for at least the next 12 months

The agreement will be in place for at least the next 12 months There will be no cap on the number of refugees to be settled in PNG

There will be no cap on the number of refugees to be settled in PNG Nauru has agreed to a similar arrangement, but will decide its own resettlement numbers

Young Afghan men talk of the change in policy but say they are still considering going to Australia after being told by people smugglers that their cases will have to be accepted by Australia.

People smugglers are saying Australia will still accept refugees from places like Afghanistan and Pakistan because they have a more compelling case.

A 17-year-old boy from Afghanistan told the ABC he still has some hope of reaching Australia.

"The agent people and some of my friends said it's a lie; the people are not sent to PNG, the people who arrive at Christmas Island end up in Australia," he said.

'The rules have changed', Jason Clare says

Home Affairs Minister Jason Clare says there have been encouraging signs that the Government's new border protection policy is working.

But he says it is still early days.

"There are thousands in Indonesia at the moment who have already paid people smugglers to get onto a boat or paid half the price and many will continue to be lured to get onto a boat and test this Government's resolve," he said.

"I want to make this clear: the rules have changed."

Mr Clare's comments come as Customs confirm two asylum seeker boats carrying a total of 124 people have arrived in the last two days.

A boat carrying 59 asylum seekers and five crew arrived near Christmas Island yesterday.

While this morning a boat carrying 56 people and four crew arrived near the Ashmore Islands.

On Tuesday, Immigration Minister Tony Burke watched on as PNG's foreign minister, Rimbink Pato, signed the MOU document at a small ceremony in Port Moresby.

Mr Burke said there could now be no doubt about the legally-binding nature of the agreement between the two countries.