Indonesia has agreed to a request from Kevin Rudd to make it harder for people from Iran to enter the country in order to travel to Australia by boat.

Indonesian justice minister Amir Syamsuddin has signed a letter - in effect a ministerial decree - that will stop Iranians being able to obtain a visa on arrival when they fly to Indonesia.

The move could slow the flow of people on their way to seeking asylum in Australia.

The PM is expected to announce his revamped asylum seeker policy as soon as today, and there is growing speculation it will involve re-settling refugees in Papua New Guinea, not just processing them there.

Key points: Indonesian minister signs decree that stops Iranians obtaining visa on arrival.

Indonesian minister signs decree that stops Iranians obtaining visa on arrival. Currently, Iranians can obtain 30-day visas in Indonesia for $25.

Currently, Iranians can obtain 30-day visas in Indonesia for $25. The decree follows a request from PM Kevin Rudd during recent talks on asylum seekers.

The decree follows a request from PM Kevin Rudd during recent talks on asylum seekers. Figures show that 12pc of refugees registered with UN in Indonesia were Iranian.

Mr Syamsuddin has confirmed the visa changes were made following a request from Mr Rudd last week.

AM understands officials from the Department of Immigration have been in Tehran negotiating for the Government there to take back asylum seekers.

Currently Iran does not accept involuntary returns.

A spokeswoman for the Prime Minister has confirmed that Mr Rudd specifically raised concern about the arrangements for visas on arrival in Indonesia during his discussions with president Susilo Bambang Yudhoyono.

She says any action to tighten the arrangements is welcome.

Foreign Minister Bob Carr has welcomed the move, saying it will be a significant blow for people smugglers.

Senator Carr has said a large number of asylum seekers arriving in Australia, particularly those from Iran, are "economic migrants" rather than genuine refugees.

"One of the things that people smugglers have been doing has been to collect Iranians who fly out of Tehran, land in Jakarta and pay what's said to be $25 for a visa," he said.

"The fact that this practice is going to be curbed means the economic basis, the legal basis for people smuggling is dealt a serious blow."

It is not yet known when the restriction on Iranians will take effect.

Indonesia is a transit destination for people on their way to Australia to seek asylum, with thousands taking the risky boat ride.

At the end of June, 12 per cent of people registered with the UN's refugee agency in Indonesia were from Iran.

Rudd wants closer look at visa rules across the region

Earlier this month Mr Yudhoyono and Mr Rudd announced a regional conference to discuss people smuggling.

At a later address to the National Press Club, Mr Rudd said one of the advantages to be achieved through such a conference was to examine regional visa regimes.

"That is, visas and regimes which allow too easy access to various countries in the region," he said.

The Prime Minister's new strategy will be three-fold, with action at a national, regional and global level.

Mr Rudd has said he wants to tighten refugee processing laws and has flagged that he may seek changes to the United Nations' 1951 Refugee Convention.

He recently held meetings with the leaders of Papua New Guinea (PNG) and Indonesia to discuss greater cooperation.

PNG is looking to speed up the process for constructing a permanent regional processing centre at Manus Island.

AM has been been told that Mr Rudd's package is likely to include a deal with PNG to expand its detention capacity, particularly on Manus Island.

On Wednesday night the Australian Navy rescued another 120 asylum seekers after their boat got into trouble near Christmas Island.

Just a day earlier four people drowned when their boat capsized in rough seas.

An international policy expert says Mr Rudd's chances of changing the refugee convention are slim to none.

Professor William Maley, director of the Asia Pacific College of Diplomacy at the Australian National University, says Mr Rudd has very limited scope to change the text of the document.

Sri Lanka and Afghanistan don't have access to 30-day visa

Indonesia correspondent Helen Brown told AM that Iran is the only major source country that has access to Indonesia's 30-day visa system, while Sri Lanka and Afghanistan do not.

"[An] official did make note that they've noticed in Indonesia that more Iranians are coming in and using this system of visa on arrival and that has become a concern to them. They're worried that it is in fact being misused," she said.

"We also know that in Indonesia around the end of June there were just over 8,000 registered with the UNHCR (United Nations High Commissioner for Refugees) and of that 12 per cent were from Iran.

"So that's around 990 ... you have 990 Iranians who are registered in Indonesia seeking placement to another country."

Kaveh Akbari, a university student and an Iranian refugee who resettled in Australian in 1995, heads the Free Iran Project.

He says the Government's assertion that most Iranians coming to Australia are economic migrants is ludicrous.

"What we're talking about is this, just to put it into context: if you are caught walking on the street holding the hands of your girlfriend and you can't provide proof that this person is your wife, you are subject to lashing," he said.

"If you're caught drinking, you know, even if there's alcohol on your breath and there's alcohol in your system, you are subject to lashing.

"If you're caught expressing yourself politically in any way, you are subject to this kind of treatment."

Coalition vows to wage war on people smugglers

The Opposition's immigration spokesman, meanwhile, has declared Australia must wage a war against people smugglers.

Scott Morrison has accused the Government of being all talk and no action on stemming the flow of boats.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Watch Duration: 7 minutes 52 seconds 7 m Scott Morrison describes 'war against people smuggling' ( Chris Uhlmann )

He has told 7.30 that if the Coalition was elected it would put in place deterrence measures at every opportunity.

"We will stop the boats because we will respond to the situation that we're presented with and that is our resolve," he said.

"This is a war against people smuggling and you've got to approach it on that basis.

"We will not cease until it's done. Kevin Rudd does not believe you can stop the boats."

Mr Morrison said the Coalition has not ruled out withdrawing from the refugee convention.

"If you were to withdraw from the convention, it wouldn't take effect for a year, that's the process.

"What we think we have to do immediately is things that have an impact right now, and that is turning boats back where it's safe to do so, it is temporary protection visas, it is expanded regional offshore processing."