Indonesian authorities have found 13 people on an island off East Java, raising hope there have been more survivors of the disastrous sinking of a vessel laden with asylum seekers.

The people were spotted from a helicopter on Barung Island and their identities have not been confirmed.

Asylum seekers who survived a wreck walk outside their temporary shelter in Trenggalek, East Java, Indonesia, Sunday, Dec. 18, 2011. Rescuers battled high waves Sunday as they searched for asylum seekers still missing after their wooden ship sank off Indonesia's main island of Java. Credit:AP

A boat has been despatched to rescue the people, said the head of the local search and rescue team Kelik Enggar Purwanto.

The discovery came as other survivors say they will try again to reach Australia by sea, as they expressed their distaste and confusion about the Government's policy which allows refugees who arrive by boat to be resettled but denies assistance to those who can't make it.